Asian casino operator NagaCorp Limited has reportedly announced the implementation of a series of ‘proactive measures’ concerning its NagaWorld facility in Cambodia that are to involve extensive job lay-offs and pay cuts.
According to a report from GGRAsia, the Hong Kong-listed firm used an official filing earlier today to detail that the action is necessary to secure the future of the 700-room property in the wake of financial uncertainties being created by the ongoing coronavirus pandemic. The source explained that the 185-acre development was completely shuttered for a 14-week period last year before being closed again from the first day of March after eleven members of its staff tested positive for the potentially-lethal ailment.
Easy explanation:
NagaCorp Limited reportedly asserted that the redundancies began from March 1 and are all part of ‘a rationalization program’ that has been designed to ‘improve cost efficiencies’ following the appearance of the coronavirus pandemic. The firm purportedly also declared that this scheme will see the laid-off NagaWorld employees provided with ‘enhanced termination compensation’ that is to be ‘over and above payments required by the applicable Cambodian laws’ so as to assist them into ‘other career or business interests.’
Reportedly read a statement from NagaCorp Limited…
“We believe that these changes and other changes we have made as part of our coronavirus strategy will help with the quick return to business normality and help deliver continued financial stability over the long term.”
Domestic domination:
NagaCorp Limited opened its 16-story NagaWorld development in 2003 complete with a casino offering a selection of over 1,500 slots alongside some 169 gaming tables. The operator recently inked a deal that extended the exclusivity clause attached to the venue’s gaming license by another ten years to mean that no other such facility will be permitted to open within a 124-mile radius of Phnom Penh until at least the end of 2045.
Large lay-off:
A local labour union reportedly told GGRAsia in April that up to 1,300 jobs could be at risk if NagaCorp Limited decided to implement such a significant cost-cutting exercise. However, the operator has purportedly since been reluctant to disclose the specific number of expected lay-offs and was only prepared to proclaim earlier today that talks with those being impacted are ‘ongoing.’
“As at the date of this announcement, a majority number of affected employees have signed mutual separation agreements.”
Crowded coffers:
NagaCorp Limited reportedly finished by disclosing that the cost-cutting program is expected to reduce the monthly operating costs at NagaWorld by approximately 23% to around $6.6 million and lower its associated expenses by 60% to something like $2.3 million. It moreover purportedly pronounced that it currently holds cash and deposits amounting to $451.7 million, which it claimed is enough to ‘support more than six months of operating expenditure and interest expenses.’
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