Aristocrat stated that “around 1,000 staff will be stood down until the end of June 2020, principally in land-based sales, service and manufacturing operations, reflecting venue closures and uncertain reopening time frames. Around 200 roles will be removed permanently from the business, reflecting changed priorities.”
The decision would take effect from May 1. Aristocrat aims to cut salaries of 1,500 employees by 10-20%, fees payable to board directors will be reduced by 20%, and the salary of Trevor Croker, managing director and chief executive, will also be reduced by 30%.
The cuts are an attempt to cut down people's costs, which make up about 70% of the company’s expenses. Aristocrat started it “continues to implement a comprehensive Covid-19 response, focused on protecting its strategic advantages and positioning the land-based business to respond quickly as demand returns”.
Aristocrat’s expense cuts should save the company AU$100 million (US$65 million) until the end of the financial year on 30 September 2020. The company stated it has liquidity of AU$1 billion. Aristocrat’s revolving credit facility supplied AU$150 million, and additional AU$136 million came from the upsize of the facility.
Despite its losses, Aristocrat partnered with City of Dreams Manila and donated 1,700 food packages to hospitals and medical centers all over Manila. The packages give the community access to essential food ingredients. Lloyd Robson, general manager of Aristocrat (Asia-Pacific), said, “We know this is a challenging and unsettling time for the local community of Paranaque and we wanted them to know that they are not alone, and together we will get through this.”
