NagaWorld to Slash 1,300 Jobs as COVID-19 Hits Profits

• 3 May 2021
• Local News
• 3359 Views

Due to the large drop in profit caused by the COVID-19 pandemic, Cambodia’s largest casino NagaWorld has decided to slash 1,300 jobs, according to the South China Morning Post.

These 1,300 jobs are equal to more than 15% of the total staff, who will be laid off in the next few weeks.

The SCMP added that NagaWorld will calculate severance packages based on reduced wages in 2020 and using government guidelines introduced to help businesses hit by the pandemic. With this method, redundant staff will lose tens of thousands of dollars.

This action triggered criticism from the workers’ union and advocates saying that the COVID-19 pandemic indeed threatens labour laws in Cambodia and worldwide.

“Workers risked their safety to make profits for NagaWorld during the pandemic and then when they need help, they are abandoned,” union leader Chhim Sithar told the South China Morning Post.

“We are asking for support and they have responded with the idea of mass lay-offs. It’s extremely disappointing. NagaWorld’s plans breach labour laws as redundancies should take into account seniority and length of service,” she added.

The South China Morning Post tried to contact the Ministry of Labour, but the ministry did not respond to the request on this matter.

NagaCorp posted a net profit of US$102.3 million for its 2020 financial year, an 80% drop compared to the amount earned in 2019, mainly due to the April-July closure in response to the COVID-19 pandemic. (Read more)

On 01 March, NagaCorp once again announced that the firm has voluntarily suspended operations after 11 of their staff tested positive for COVID-19. (Read more)

Not only NagaWorld saw a negative effect from the pandemic, overall casino tax revenue collection in Cambodia in 2020 was recorded at US$40 million, also down by 50% compared to the same period in 2019, according to a senior official from the Ministry of Economy and Finance (MEF). (Read more)

• Economy and Finance