NagaCorp confirms cut jobs due to economic crisis
NagaCorp has confirmed dismissals and pay cuts due to the impact of the Covid-19 pandemic and the closure of NagaWorld since March.
Cambodia.- NagaCorp has confirmed plans to reduce pay and lay off employees in order to improve cost efficiency due to the impact of the Covid-19 pandemic.
The company has launched a rationalisation programme that it says will help deliver continued financial stability over the long term. NagaCorp said close to 600 employees will lose their positions.
The company said: “We believe that it is important for the Group to maintain operational and financial flexibility to ensure that it remains focused and efficient during this period.
“To reduce the impact on our employees, the Company 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.”
Due to an increase in Covid-19 cases in Cambodia, NagaWorld temporarily suspended operations on a voluntary basis on 2 March 2021. It has not reopened since.
To minimise its cash expenditures, NagaCorp has taken a series of actions, including scaling back hotel and food and beverages operations, reducing payroll expenses by limiting staff on-site, and the closure of facilities to reduce utilities expenditure.
Chhun Sokha, union vice president, has said more than 500 employees union leaders, activists and members have received layoff notices.
Sokha claimed NagaCorp’s offer to provide the government with subsidies to help Cambodian people during the Covid-19 pandemic was “fake”. She said the company did nothing to help its workers keep their jobs.
She added that those laid off include pregnant women and recent mothers.
In April, NagaWorld announced it had started to see some signs of recovering during the first three months of the year with a 99.4 per cent increase in average daily mass table game buy-ins compared to the first quarter of 2020.
NagaCorp reported average daily volume from electronic gaming machines (EGMs) reached US$5.44m, which represents a 98.5 per cent increase compared to the same period in the previous year.
