The promoter of the Okada Manila casino resort (pictured in a file photo) in the Philippine capital is set to reduce its workforce via a retrenchment programme, eyeing to cut more than 1,000 employees, a source confirmed to GGRAsia. The information was carried in an internal letter sent to the company’s employees by Okada Manila president Takashi Oya.
The Okada Manila venue is operated by Tiger Resort, Leisure and Entertainment Inc. The latter is a subsidiary of Japanese conglomerate Universal Entertainment Corp.
In the memo, Mr Oya said the lack of revenues during the mandatory pause of casino and hotel operations in Manila had led to “severe losses to the company”. He added that the firm would have to adjust to cope with the changes in the business environment, meaning it would “require a smaller workforce”.
In order to “remain a viable business,” Okada Manila will dismiss “more than 1,000 employees,” stated the executive. The letter stated that affected staff would receive severance pay as required under local legislation.
Okada Manila, along with other large-scale private-sector casino resorts in the Entertainment City zone in Manila, has been closed since mid-March on a temporary basis due to the Metro Manila lockdown linked to the Covid-19 pandemic. The lockdown has been subsequently extended in increments, and is poised to run in a modified form until at least the end of this month.
Earlier this month, Fitch Ratings Inc downgraded the rating of the parent company of Okada Manila and said the outlook for Universal Entertainment was “negative”. “The gaming sector is highly exposed to the outbreak and Universal Entertainment’s vulnerability is exacerbated by its single-location focus and its lack of a track record in casino operations as its integrated resort in the Philippines, the Okada Manila, is still in the ramp-up phase,” stated the ratings agency.
Oct 30, 2020The 12 months from April 4, 2019 – the date when Singapore increased by 50 percent the cost of either a daily or yearly casino-entry pass for the city-state’s nationals and permanent residents...
”Month-to-date [in October], we are encouraged that our properties have crossed property-EBITDA break-even levels, led by the recovery in the premium segments”
Chief executive and president of MGM Resorts