Crown Resorts has announced that it is standing down approximately 95 percent of its workforce during the Covid-19 business suspension period, a process which is now “substantially complete.”
Crown states that it has agreed to provide an ex gratia payment of two weeks’ pay to non-senior management full-time and part-time employees who have been stood down, and that a lump sum payment of A$1,000 (US$640) has been provided to “eligible casual workers.”
CEO Ken Barton stated, “We have taken the tough but necessary decision to stand down a large number of our employees. I have a deep gratitude to our employees for their understanding and commitment during this painful and highly uncertain time. We are continuing to investigate ways in which we can support our employees on an ongoing basis.”
While its gaming and other non-essential business activities remain suspended, Crown expects its underlying operating cash costs to reduce to between A$20-30 million per month.
The Australian government announced that casinos must close on March 23.
On the other hand, Crown also announced that the Crown Sydney project is continuing construction as planned, and it remains on track to be completed by the end of the year. The project cost is still expected to be approximately A$2.2 billion. Workforce stand downs do not apply to this under-construction facility.