Additional layoffs at University of Pennsylvania.
The well-known American casino enterprise Penn National Gaming (PNG) has unveiled additional layoffs. This move will impact M Resort in Las Vegas, which had previously confirmed eliminating 352 positions. Subsequently, an additional 58 staff members will become unemployed. Just recently, Tropicana Las Vegas, another PNG property, revealed cutting 620 jobs. Are local unions capable of stopping these layoffs?
A countdown of unfortunate circumstances
Alongside their previous announcement of 352 dismissals, PNG's M Resort Spa Casino Las Vegas informed about 58 more positions being eliminated. The information was shared with the Local Department of Employment, Training and Rehabilitation this week. The operator followed the Worker Adjustment and Retraining Notification Act, which requires employers with more than 100 employees to abide by it.
In their notice, the company mentioned the unexpected and dramatic effects of the pandemic were the main reasons for the high number of job cuts. They were unfortunately unforeseen and unavoidable due to the uncontrollable circumstances behind them. Employees had already been informed about the layoffs on August 15th.
Unions like Culinary Union that have been fighting for casino employees' job security could potentially stop individual redundancies, however, this could just lead to others losing their jobs instead. It seems the overall job cuts are indeed unpreventable. M Resort's statement also mentioned the casino's revenue has been declining despite reopening, as enhanced safety measures were in place due to the pandemic.
The company said that the redundancies were a combination of the impact of the casino closure and the repercussions of the safety measures taken after reopening. Since all staff has to reduce by 50%, the temporary closure and strict regulations are the causes.
Penn's national challenges
Penn National Gaming also announced more layoffs in Wymossing, Pennsylvania and Las Vegas. The long-term implications are unknown, but the crisis will eventually impact all their locations. Meanwhile, international travel restrictions will also harm the business. It's clear that the situation will continue to be challenging for some time.
Last month, Tropicana Las Vegas, owned by PNG, disclosed 620 job cuts, scheduled for October. Looking at the operator's numbers so far, the situation is alarming.
The massive hit on revenue
According to iGamingBusiness, PNG's earnings dropped by 76.9% in 2020's second quarter. the one-billion-dollar revenue loss in the first half of 2020 was due to the nationwide closure of gaming facilities. Although the casinos are now open again, income from gambling is slow to recover due to the major financial losses.
Furthermore, PNG's food, beverage, and hospitality income fell by 82.3%, amounting to USD 46.3 million. The region with the largest income loss is the northeast of the USA, which saw a decline of 82.9%. In the southern areas, the loss was 56.5%, while the Midwest experienced an 86.6% drop.
Penn National Gaming President and CEO Jay Snowden said they were managing well with the situation and their employees had demonstrated tenacity amidst the pandemic. While the past couple of months have been difficult, they've shown they're up to the task.
Destruction of jobs in casinos worldwide
Not just PNG, but across the globe, the casino industry is dealing with an overwhelming number of layoffs. In the USA alone, the leisure and hospitality industry has lost over 7.7 million jobs. This equates to 47% of the total job loss and a historical high.
Likewise, casino workers in Macau's gambling hub have been experiencing redundancies. They recorded a 93% drop in turnover in the early stages of June. The industry magazine IAG estimated over 5,200 vacancies have disappeared with casinos now generating 97% less income. Operators like Melco, Wynn, and Las Vegas Sands currently have minimal revenue.
Europe has also been affected by this crisis. UK casinos were slated to reopen in August, but their opening is uncertain. As a result, thousands of jobs are under threat. A few weeks ago, Genting UK, which runs 43 casinos in the UK, shared plans to dismiss 1,642 employees. There were even discussions of their departure from the market.
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Source: www.onlinecasinosdeutschland.com
