Casino and hotel operator Sun International is permanently closing two South African gaming venues due to the financial burden of COVID-19 lockdowns.

On March 24, South Africa’s government ordered a national lockdown of non-essential businesses, including hotel and casinos run by Sun International. On Friday, the company issued a statement saying it planned to reduce staff hours and salaries when its businesses reopen on May 1.

The reopening will take place on a limited basis, with plans to ramp up operations dependent on customer demand. Permanent full-time staff will see their salaries cut by 20%, while staff earning over ZAR1m (US$53k) per year are looking at a 30% cut.

The company acknowledged that the pay cuts will have “a substantial impact” on staff, but argued that “we need to ensure the long-term sustainability of the company so that we can protect as many jobs as possible.” Without the cuts, Sun’s lenders “will no longer provide the capital we need to continue to operate.”