Casinos Austria plans to lay off up to 600 staff as the scandal-plagued firm deals with the fallout of the COVID-19 pandemic on its operations.
This week, Casinos Austria AG (CASAG) informed Public Employment Service Austria (AMS) that it could turf as many as 600 staff – roughly one-third of its payroll – due to the financial blow suffered from the pandemic-related closure of its 12 casinos and sports betting shortfalls as major leagues halted play this spring.
Under AMS rules, layoffs can proceed 30 days after notification. It’s unclear how many jobs will actually face the axe, as the company is negotiating with its unions over potential buy-outs and shifts to part-time employment. CASAG originally announced plans for up to 500 layoffs this summer as part of its ‘ReFIT’ restructuring plan but said this week that it hopes the number will be “significantly fewer than 600.”
CASAG booked a €112m profit in 2019 but the company said it expects to book a net loss of around €65m this year and the layoffs are intended to help trim €40m from the expenses column by 2022.