The British casino operator Genting has to lay off more than 1,600 employees. The company cites the ongoing restrictions as the reason. As the group announced at the end of the week, a total of 1,642 jobs would have to be cut due to the ongoing closings of the casinos. In the last few days there had been repeated criticism of the casino closings. Although numerous other gambling establishments such as lottery acceptance points and betting offices are allowed to reopen, the stationary casinos are still closed. For this reason, companies warned of possible cuts some time ago.
The British Parliament.
The restrictions on the casino industry are also an important issue in the British Parliament. © Mary_R_Smith / Pixabay
Another setback for Genting employees
The British casino operator Genting UK is not in good shape at the moment. The company is suffering massively from the corona pandemic. This had ensured that the stationary casinos had to close their doors in Great Britain. This requirement continues to apply so that companies face enormous financial problems. That will now lead to job cuts at Genting.
As the group announced, a good 1,642 employees would have to be laid off due to the ongoing closure. Within just a few weeks, this is the second bad news for the company’s employees. It was only in June that the group announced that it would completely close three of the 42 casinos in Great Britain. Specifically, it’s about the establishments in Margate, Torquay and Bristol. In addition, Genting announced at the time that it would at least have to make cuts at the other locations.
The company’s announcement did not only scare the employees. The labor union GMB Union has also commented on the job cuts. Speaking to The Guardian, head Mick Rix said:
“The company's announcement is outrageous. It truly is a slap in the face for the loyal long-term workers and for the British people who have helped Genting through the lockdown with millions of taxpayers' money. And now they are firing people instead of participating in the government bailout fund from the end of August. "
Genting UK: Cuts and closings are unavoidable at the moment
According to Genting, however, the cuts and closings cannot be avoided at the current time. The closings due to the Corona crisis would have maneuvered the company into excessive losses. In the eyes of Genting, the fact that the government has not yet presented a timeline for how things could go on with the reopening of the casinos creates additional uncertainty in Genting’s eyes. Genting said that the industry had been ready for the reopening for a long time and that the strictest hygiene regulations would enable the safe reception of guests. However, no corresponding reaction has yet been received from the House of Commons.
The group can also explain why they don’t want to access the government’s rescue package. Accordingly, this rescue package is intended to keep jobs. However, the group is aware that a large number of jobs will probably not be able to be maintained. Therefore, it is only fair not to accept any more money from the government bailout and instead to begin deliberations on the layoffs. According to Genting, the fact that this step is necessary is “heartbreaking”.
At the same time, the company announced that they wanted to do everything in their power to reinstall the affected employees in the casino at a later date. But that is only possible once you have recovered from the massive losses and damage caused by the corona pandemic.
Casino closings are a point of contention
The fact that the casinos in Great Britain are still not allowed to reopen despite their precautionary measures is not only a thorn in the side of Genting UK. Numerous companies have raged against the decisions of politics in the last few weeks. And at least in Scotland this criticism has paid off.
The government recently announced that the strict measures for betting shops are to be lifted here. From July 22nd, the gambling establishments will be allowed to reopen regularly. The industry association of the Betting and Gaming Council (BGC) had previously advocated this decision.
After the success in Scotland, the gambling association is now planning to convince the politicians in London that the reception of guests in the casinos can be implemented safely. The next days and weeks will show whether this succeeds.