Coronavirus: Tabcorp to furlough 700 staff as part of cost cutting
Tabcorp is to furlough more than 700 staff members until 30 June, in an effort to mitigate the impact of the coronavirus outbreak on business operations.
Casinos in Australia have been closed since 22 March, with Prime Minister Scott Morrison expecting the closures to last for six months, while the Australian Football League (AFL) and National Rugby League (NRL) are among the major sports events to have been suspended.
Despite this, Tapcorp’s lotteries and keno, along with its wagering and media digital channels, continue to operate; so too do thoroughbred, harness and greyhound race meetings in Australia, under strict health restrictions.
While the Australian operator has suspended payment owed from licensed venues, it admitted it must implement cost-cutting measures.
In addition, full-time employees will take at least one day of leave each week, until 30 June.
MD and CEO David Attenborough will take a 20% salary reduction until the end of June, with Board Chairman and Non-Executive Director fees reduced by 10%.
While the operator cannot predict the exact effect the coronavirus will have on earnings, a review of the capital expenditure program to the end of June has meant business as usual capex in the second half of 2020 is expected to be AUS$120m ($74.2m), down from AUS$160m.
CEO Attenborough said: “We are committed to working proactively and collaboratively with all our stakeholders so we can collectively emerge from the COVID-19 period as strongly as possible.”
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