Cambodian casino Nagacorp cuts down on jobs and employment pay due to financial impact of Covid countermeasures
Despite recording US$102m profit in 2020, Nagacorp, the only casino in Phnom Penh, Cambodia’s capital, has stated to aim at decreasing its monthly run-rate costs by about $2m as mitigation efforts of the Covid lockdown measures. Most notably the operator will pursue job cuts and cuts in employee pay, along with other programmes.
Since the suspension of NagaWorld’s casino operations in March 2 due to a spike in covid-19 cases in Cambodia, the firm has generated zero revenue.
Nagacorp declared an average $19.7m monthly expenditure in the two months prior to the shutdown, with a run rate cost of $8.6 million. The firm aims to bring down that figure by $2m to $6.6m and to cut its $5.8m to $2.3m after repaying certain debt.
Earlier this month, NagaWorld had laid off about 600 land-based staff, citing financial hardships due to the pandemic, despite posting a strong profit last year, and being one of the only global operators to pay a dividend for 2020.
It said that meetings with staff are ongoing and the majority have accepted mutual separation agreements. “The company will provide affected employees with enhanced termination compensation over and above payments required by the applicable Cambodian laws to assist their transition into other career or business interests,” it said.
According to the group’s annual report, it employed 8,371 people as of December 2020, down from 8,625 in 2019. In March, Cambodia rejected NagaCorp Ltd’s plans for a $350 million non-gaming integrated resort (IR) in Siem Reap province dubbed “Angkor Lake of Wonder” (ALOW).
Cambodia has recorded 600 new cases on Monday and reported a total of 266 deaths, as reported by Asian Gaming Brief.
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