Genting Reportedly Planning Massive Pay Cuts Because Of Coronavirus Closures
Posted on: April 21, 2020, 12:26h.
Last updated on: April 21, 2020, 01:50h.
Genting Bhd, the conglomerate that controls gaming interests under the Resorts World brand, is reportedly planning company-wide salary reductions for the first time in its 55-year history as the operator grapples with casino closures around the world.
Resorts World Sentosa, operated by Genting Singapore and one of two integrated resorts in the city-state, has been closed for over a month and is expected to remain shuttered through at least May 4. That’s one of the company’s highest-grossing and most profitable properties.
Genting CEO Tan Sri Lim Kok Thay is pushing pay cuts as a cost-saving measure, and those salary reductions will affect a wide array of employees.
The proposed cuts will see as much as a 20 percent temporary reduction of basic salary for employees based on their ranks, while Genting Hong Kong Limited proposed up to a 50 percent cut for those holding vice-president positions or higher,” reports The Malay Mail.
Genting Hong Kong, a hotelier and cruise line operator, reportedly confirmed the pay paring. But the Malaysia and Singapore units have not commented on the speculation.
Away from its core markets in Asia, Genting is feeling the effects of the COVID-19 outbreak in other regions, including the US. The company operates the Resorts World New York City in Queens and Resorts World Catskills in upstate N.Y., both currently shuttered because of the virus.
The Malaysian company is also working on the Resorts World Las Vegas, which is slated to open on the Strip in summer 2021. However, that process is being slowed because four workers at the site contracted the coronavirus over the past several weeks.
In an effort to comply with Centers for Disease Control and Prevention and Occupational Safety and Health Administration protocols on social distancing, Genting is temporarily reducing construction capacity on some of the property’s towers.
Other areas of the Resorts World Las Vegas construction site are closed for the time being. The project carries a price tag of roughly $4 billion and is Genting’s initial foray into the largest US gaming market.
No Mention of Japan
The timing of Genting’s compensation cuts is interesting, should the reports prove accurate, because it comes just days after the company confirmed its entry into a crowded field of operators pursuing a gaming license in Yokohama.
The Malaysian conglomerate has a long-running interest in procuring one of the first three Japanese gaming licenses, a pursuit Genting and its rivals are sticking with despite the coronavirus.
No comments about the Japan effort have been made in conjunction with the reported salary cuts. But earlier this year, Genting raised $10 billion to pursue a license in the land of the Rising Sun. Analysts expect it will take at least that much to build a high-end integrated resort there.
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