In a published news spotted from a local English weekly, Genting Malaysia as it seems will be undertaking an “unprecedented” retrenchment exercise. The news report by the financial paper stated that the company will be retrenching up to 20 percent of its staff force.
The casino operator had faced more than two months of closure due to the ongoing Covid-19 outbreak and Movement Control Order (MCO) that was implemented on March 18.
According to a source that spoke to the paper, the cost-cutting exercise was inevitable as salaries make up a large portion of the operator’s costs.
Genting Malaysia which operates a casino, theme park and pemium outlet has been closed since March and is expected to remain closed until June. The impact of the closer meant that it will losing close to RM4 million everyday.
It is estimated to register RM141 million losses (from RM885 million profit) after factoring in the extended closure and slower recovery. Visitor arrivals are expected to decline 40% year-on-year. Casino and theme parks will be the last choice on anyone’s mind at the moment, Genting depends on tourist visits for its revenue with high volume coming from China.
Covid 19 has severely impacted players across the hospitality and tourism industry as they continue to face economic impact due to the virus outbreak that had led to disruptions in the travel industry as well as restrictions in the movement.