Due to the ongoing pandemic and business closure, NagaCorp announced that some of its employees at Naga World Integrated Resort in Phnom Penh, Cambodia may be affected by pay cuts and layoffs.
Naga World IR Employees May Be Affected by Pay Cuts, Layoffs
Casino operator NagaCorp Ltd confirmed in a statement on Monday this week that some of its employees at Naga World Integrated Resort (IR) may be affected by pay cuts, as well as layoffs. The company that operates in the capital of Cambodia, Phnom Penh, deemed the actions as “proactive measures” pushed forward in light of the ongoing impact of the COVID-19 pandemic in the country. Furthermore, NagaCorp has announced the launch of a “rationalization program” that aims at improving cost efficiency. That program, according to the operator, may affect some of the employees.
“As at the date of this announcement, a majority number of affected employees have signed mutual separation agreements.”
Currently, NagaCorp has not disclosed how many employees may be affected. With that in mind, the operator said that “meetings with affected employees are ongoing“. NagaCorp assured that it “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”. Furthermore, it said that as of Monday, June 7, the majority of affected employees have already signed mutual separation agreements.
The Operator Aims to Reduce Monthly Expenditures
NagaCorp acknowledged that while the business operations remain on hold, no revenue is being generated. The operator revealed that it had $19.7 million in “average monthly expenditures, based on the two months ended 28 February 2021″. Furthermore, NagaCorp said that it has taken, and expects to continue taking series of actions, aiming at minimizing cash expenditures.
“We believe that these changes and other changes we have made as part of our COVID-19 strategy will help with the quick return to business normality and help deliver continued financial stability over the long term.“
Such actions, according to the operator may include scaling back of hotel and food beverage operations, as well as reducing payroll expenses. In light of the actions it has taken to reduce expenses, NagaCorp expects to limit the monthly run-rate operating costs to $6.6 million.
The operator hopes that the changes which were introduced will help the company return to business quickly, and recover from the COVID-19 impact. Furthermore, NagaCorp said that it believes that “it is important for the Group to maintain operational and financial flexibility to ensure that it remains focused and efficient during this period“.