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Crown Resorts Lays Off 11,500 Employees Over COVID-19

  • 95% of workforce stood down following March government order to close all gambling venues
  • Support measures include two weeks' pay to full- and part-time staff, lump sum to casual workers
  • Senior management, chair, and board of directors also taking 20% salary cuts until June 30
  • Hotel and casino operator maintains it is financially able to withstand extended closure period?
Crown Resorts website homepage
Crown Resorts is laying off 95% of its employees in the wake of the COVID-19 pandemic. [Image: Shutterstock.com]

Forced to reduce workforce

Australia’s Crown Resorts is laying off 95% of its staff following a March government order to close all gambling venues in response to the COVID-19 pandemic.

The casino operator released a statement on Thursday explaining that it had been “forced to substantially reduce its workforce” either on a full or partial basis. 11,500 of its employees will be standing down. Only those roles in “business-critical functions” will remain active.

Two weeks’ pay to employees

Crown CEO Ken Barton said the company’s move to stand down the majority of its staff was a “tough but necessary decision.” He added: “We are continuing to investigate ways in which we can support our employees on an ongoing basis.”

One way will be to provide an ex gratia payment of a two-week salary to full- and part-time employees who were made redundant, excluding senior management. Eligible casual workers will also get a lump sum of AU$1,000 ($630).

Barton and other senior management personnel have taken a 20% reduction in fixed remuneration

According to the statement, Barton and other senior management personnel have taken a 20% reduction in fixed remuneration until June 30. Crown’s chair and board of directors are also taking 20% cuts for the same amount of time.

Enough money to weather the storm

As a result of the suspension of its gaming and other non-essential business activities, Crown Resorts projects that its underlying operating cash costs will drop to between AU$20m and AU$30m ($12-18m) per month.

Crown has around AU$500m ($314m) cash on hand but is able to get an extra AU$1bn ($630m) in debt facilities. Barton stated that the company is

well placed to withstand an extended period of closure.”

Crown Resorts lends a hand

In a bid to do its part amid the coronavirus pandemic, Crown Resorts has provided around 950 hotel rooms in Melbourne and 600 units in Perth to accommodate those who need to self-isolate on their return from overseas.

It is also working with the Australian government to provide safe accommodation for those who are currently experiencing domestic violence.

According to the latest figures from the Australian government’s department of health, there were 6,468 confirmed cases of COVID-19 in Australia, including 63 reported deaths. More than 380,000 tests were carried out across the country to date.

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