Integrated casino resort Okada Manila has informed its employees that its overall workforce is to be reduced because of revenue losses that the company suffered in regard to the social isolation and lockdown measures to tackle the further spread of the coronavirus infection.
Takashi Oya, the President of Okada Manila, revealed in an internal memo dated May 26th, 2020 that the casino resort would cut its workforce via a retrenchment program. As the company’s boss explained, the gambling operator was unable to escape the situation because of the new reality that lies ahead of the company. He further shared that the casino resort has not generated any revenues since the beginning of the lockdown, with the social distancing measures having been “financially draining” and have inflicted serious losses to the operator.
Mr. Oya shared that if the problem is not addressed, the financial losses for Okada Manila would increase. This is one of the main reasons why the casino resort is forced to continue operation with a smaller number of employees with the President of the casino resort explaining that Okada Manila would have to lay off over 1,000 employees in order to remain a viable business. Mr. Oya noted that it was not easy for the casino resort’s management to make such a decision but that was a necessary step to take in order to keep the business alive.
The Casino Resort Complex Has Been Left with No Revenues During the Community Quarantice
All land-based casino, sports betting, slot machine clubs, poker, bingo and electronic games operation was ceased by the Philippine Amusement and Gaming Corp. (PAGCOR) on March 15th as part of the Government’s directive to roll out strict social isolation measures in Metro Manila and the entire Luzon island to prevent the further spread of the coronavirus infection.
The operations of the $2.4-billion oceanfront casino resort complex have also been suspended at the time and have remained closed since then. It has been left with no revenues during the lockdown, so it was now forced to take some measures in order to make sure its business remains viable. The spokesman for the Trade Union Congress of the Philippines, which is currently the largest labor organization in the country, revealed that some employees of Okada Manila have already asked for advice on matters related to the mandatory separation wages and the benefits they could be granted.
Now, the strict community quarantine that was imposed in Metro Manila has shifted to a more relaxed set of community measures and is further expected to be relaxed even more to “general community quarantine”, it remains unclear whether local gambling operations will soon be resumed, as the Government has not yet revealed any definite guidelines or timetables for the reopening of the gambling sector.
Mr. Oya shared that the ones that will be affected by the more relaxed quarantine regime in Metro Manila will receive a notice starting June 15th. Also, a separation pay will be received in accordance with the law.