Aristocrat Cuts 1,000 Positions – Implements Pay Cuts
The COVID-19 pandemic continues to impact lives globally. Some areas are starting to ease restrictions to allow people to begin to get back to life as normal. However, the damage is already done for most.
Earlier this week, Aristocrat Leisure has announced that they will cut 1,000 jobs due to the pandemic. The company is seeking to offset the impact of the global pandemic, similar to what we’ve already seen from other companies.
Most of the Aristocrat Cuts Come from US Division
According to various news sources, Aristocrat Leisure announced that they are furloughing hundreds of employees and cutting additional positions. The total number of people affected is presently at 1,000. Out of that number, 200 jobs are being cut entirely, while the remainder appears to just be on furlough.
Australian slot machine group Aristocrat Leisure Limited has assured to Macau News Agency (MNA) that its recently announced cost reductions will not have an impact on its local team and operations.https://t.co/NlIlZWtPyY
— Macau Business (@Macau_Business) April 29, 2020
According to Trevor Croker, CEO and Managing Director at Aristocrat, “We are very sensitive to the impact of necessary cost reduction measures on our people, and will work hard to support them through this difficult time consistent with our ‘people first’ approach. We believe that these changes will help maximise opportunities for Aristocrat’s dedicated and talented people over the longer term.
We will continue to do everything we can to restore momentum in our land-based business as quickly as possible recognising the importance of continuing to develop and deliver game content during this period.”
According to the reports, many of the staff reductions come in the United States. America has been the hardest hit by the global pandemic. Out of the 3.1 million cases reported worldwide, over 1 million of those cases are in America. The number of dead is nearly 60,000, more than double anywhere else in the world. That number exceeds the number of soldiers lost by the US in the Vietnam War.
Temporary Pay Cuts Also Implemented
In addition to staff reductions, Aristocrat is also implementing pay reductions for some of those remaining on staff. Approximately 1,500 staff members will see pay cuts that will last until at least September. Many are receiving pay cuts of between 10% and 20%. However, CEO Croker will take a 30% pay cut.
Aristocrat furloughs 1000, lays off 200 amid Covid-19
Tuesday 28 April 2020 – 11:30 amhttps://t.co/SatnyZdbLx
Australian gaming machine supplier Aristocrat Leisure will furlough 1,000 employees and permanently lay off another 200 to migitate the impact of the novel coro… pic.twitter.com/h75I49z93v
— betcompanies (@betcompanies) April 28, 2020
Between staff reductions and pay cuts, the company is expected to save around $100 million over the remainder of the fiscal year. The fiscal year ends on September 30. According to Croker, “These changes, and other prudent steps we are taking as part of our COVID-19 response, will deliver important operational and financial flexibility, focus and efficiency through this period of uncertainty.
We are highly focused on protecting and leveraging our strategic advantages, including industry-leading Design & Development and effective User Acquisition investment, which Aristocrat will continue to prioritise.
In land-based, we will ensure the business is ideally poised to partner our customers and grow as conditions improve, while in digital we remain fully focused on executing our growth plans and maximising opportunities at this time.”
Cuts a Way of Life During This Pandemic
Unfortunately, many companies are having to make moves to reduce staff and save costs. Earlier this month, Tabcorp furloughed 700 workers until the end of June. All live casinos in Australia are closing down for at least six months, putting all of those employees out of work.
The only real bright spot in all of this has been Australian online casinos. Online casinos have seen a sharp increase in traffic, with online gambling up 67% since the beginning of the pandemic. Unfortunately, this does not help live Aussie casinos as they are not permitted to offer online casino services to Aussies.
As this pandemic drags on, expect other companies to make similar cuts. For now, all we can do is ride this out and hope things can return to normal sooner rather than later.
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