NagaWorld will slash 1,300 jobs as the property is faced with the hardships of the COVID-19 pandemic in Cambodia.
Pandemic Forces NagaWorld to Lay Off 1,300 People
NagaWorld has been forced to cut 1,300 jobs in Cambodia as the country’s COVID-19 pandemic continues to rack up case numbers and exerts pressure on the healthcare system. In this context, NagaWorld will sever over one thousand jobs, a move that was criticized by workers’ unions, a new report by Reuters revealed.
NagaWorld, though, has responded that it has fought tooth and nail to keep employees on the payroll, enacting various mechanisms to reduce costs and weather the storm all throughout 2020.
The company decided to cut salaries across the board so that it may continue operating at its present capacity, but the unending pandemic has forced it to take more drastic measures.
An estimated 15% of the total workforce will be made redundant, resulting in job losses as well as a lack of access to severance packages. However, the unions are not pleased.
Union leader Chhim Sithar spoke to Reuters and argued that workers had worked during the pandemic, “risking their lives to make profits for NagaWorld,” and now they were being abandoned.
While this sentiment may strike home with workers who have lost their jobs, NagaWorld has been one of the gambling companies to keep its staff the longest even in the context of a raging pandemic.
NagaWorld Left with Few Real Choices
Nevertheless, Sithar’s statement best captures the current mood among workers, who feel that they have not been supported adequately. NagaWorld has not commented on Reuters’ reporting, but the operator has been affected by the pandemic same as everyone else.
With COVID-19 cases climbing steadily in the country since April 7, the hospitality industry has been starved for tourists. Locals cannot gamble, as Cambodia only allows casinos to cater to a foreign clientele.
NagaCorp posted $102 million less in profit in 2020, Reuters reported, not too shabby a stats all things considered. Sithar criticized NagaWorld’s decision further, arguing that the mass layoffs were violating labor laws in the country and adding that redundancies should be based on seniority.
NagaWorld is the sole casino in Phnom Penh, Cambodia’s capital city, giving it the opportunity to attract the bulk of the regional action.
With the caseload mounting, though, NagaWorld may have no choice but to seek and reduce operations. Century Entertainment is still waiting to open its new casino property in Dara Sakor, which was originally scheduled to launch operations in February.