Crown stands down 11,500 staff as it rides out virus crisis
Crown has stood down more than 11,000 workers, or 95 per cent of its workforce, as it moves to ride out the coronavirus pandemic.
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Crown Resorts has confirmed it has progressively stood down 11,500 workers – 95 per cent of its workforce – in the wake of the coronavirus outbreak.
The James Packer-backed casino giant has also secured a new $1 billion credit line from its banks as it moves to ride out the pandemic.
Crown – the state’s biggest single site employer – began closing gaming tables at Melbourne casino in mid February, while its gaming floors were shut last month.
This morning it said it had all but finished a process of standing down 11,500 workers with the only employees remaining at work being those in “critical functions”.
Stood down workers have been given two weeks’ salary while eligible casual workers have been given a $1000 lump sum.
Chief executive Ken Barton and other senior managers have taken a 20 per cent temporary pay cut.
“I have a deep gratitude to our employees for their understanding and commitment during this painful and highly uncertain time,” he said.
Crown has also registered for the government’s JobKeeper payment.
The stand down will save Crown $20 million to $30 million a month and the company will push ahead and pay a 30c interim dividend.
Crown also said it expected to finish its Barangaroo development in Sydney by the end o the year, barring further coronavirus-related delays.
There are 1,300 people employed on the project, which will employ 2,000 people once complete.
Crown said it had provided 950 hotel rooms in Melbourne and 600 rooms in Perth to accommodate travellers who were required to self-isolate for two weeks when returning from overseas.
Meanwhile, The Star Entertainment Group said it had finished its process of standing down 8,500 staff, or 90 per cent of its workforce – what chairman John O’Neill called “the most painful decision our senior management is ever likely to encounter”.
The Star said it had executed additional debt funding of $200 million, giving it $700 million in available cash and undrawn debt, enough to survive an extended shutdown.
The Star said it needs $220 million to survive a three-month shutdown, and $320 million to endure a six-month shutdown.
with AAP
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