According to The Edge Markets, Genting Malaysia is reportedly 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.
Earlier this month, research house, RHB Retail Research had expected the casino operator’s 2Q20 to register negative EBITDA of RM 300 million.
“We now estimate FY20F to register RM141 million losses (from RM885 million profit) after factoring in the extended closure and slower 2H20F recovery. FY20F visitor arrivals are expected to decline 40% year-on-year,” the research house said in its trading notes early May.
Players across the hospitality and tourism industry continues 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.