Casinos Austria: Salary cuts and job cuts
That Casinos Austria is no longer economically on one Working at the highest level is no secret. However, the financial situation for the company has deteriorated significantly due to the Corona crisis. This could now have serious consequences. The stuttering casinos are to be brought back into shape with a restructuring program. However, this very program could also mean the elimination of every fourth job. In addition, there are apparently salary cuts in the room. The situation is explosive.
Casinos Austria: No guests despite reopening
Since It has been known for some time that the numbers at Casinos Austria are not developing as desired. But now the situation is apparently becoming dramatic. Important income has been lost due to the Corona crisis.The casinos have been open again, at least to a limited extent, since May 29, but so far there hasn't been a large rush of players. This in turn will probably leave its mark on the company. As the Austrian daily newspaper "Kurier" reports, Casinos Austria AG is facing major job cuts. This drastic measure is part of a restructuring program called "Refit" which was developed by the company in cooperation with the consulting firm McKinsey.Around 27 percent of employees will be affected by the downsizing, i.e. almost every fourth job. A total of 427 full-time positions are to be cut by 2021.
A horror message for the employees, who now have to fear for their jobs, especially at the loss-making locations. The job cuts here can therefore be significantly larger. Figures of 55 percent are in the room, that would be more than every second job. However, the restructuring program provides thatall locations of Casinos Austria AG can be retained. That's important for the group, but it shouldn't be a consolation for the employees.
Supervisory board must agree to restructuring program
Whether the restructuring program is actually implemented depends on the decision of the supervisory board. This will be presented with "Refit"at a special session on July 8. The Supervisory Board will then decide whether the measures will actually be implemented. Should it come to that, the job cuts in full-time positions would not be enough. Employees who only work part-time at Casinos Austria would also be affected. And: Those who are allowed to stay obviously have to be satisfied with a significantly lower salary. It is said thatSalaries could be between 15 and 20 percent lower. The restructuring program specifically provides for a total reduction in personnel costs of around eleven percent.
Not only "normal" employees will be affected by the cuts and downsizing.There should also be cuts at management levels. The restructuring program envisages a reduction of around a third of the jobs here. In management, the number of full-time positions could be reduced from 113 to 75. In addition, around 41 percent of all jobs in the head office could be affected. This would mean that the number of employees here will be reduced to 113 employees. However, the figures should be viewed with a degree of caution. Casinos Austria has not yet commented on these specific figures.
Minus 65 million euros?
The expectations of those involved show how difficult the financial situation at Casag really is at the moment. The works council says that a deficit of around 47 million euros is expected.The supervisory board sees the situation even more dramatically and fears a minus of around 65 million euros. But at least 56 million euros in the coming year if the group of companies would not undergo any restructuring. It goes on to say that the austerity measures could significantly reduce the minus. In total, this would then only be 13 million euros. A positive trend and a plus of 9.5 million can be expected for the year 2022. Whether this really happens is questionable. The stationary casinos in Austria are struggling with a significant drop in visitors. In the year 2000 almost two million visitors found their way into the casinos, 20 years later this number has almost halved to 1.23 million.
The Corona crisis is making the situation worse. Income is lost - and not only from the locals.Tourists in particular ensure good sales in many locations. But not these days. According to media reports, even the locals are currently still skeptical about visiting the casino. And the competition never sleeps. In many cases, online casinos have been able to use the Corona crisis positively for themselves.
Bad mood among the employees
It is obvious that the Casag employees are anything but happy about the new reports. Aside from the actual measures, what bothers the employees above all is apparently the fact that theyonly found out about the restructuring plans through the media. Head of the Central Works Council Manfred Schönbauer explained that the earnings would be higher than expected. The employees would therefore be wronged if they were threatened with dismissal. After all, they would have done an excellent job since the reopening. Schönbauer explained to the “Salzburger Nachrichten” that Casag obviously wanted to put pressure on their negotiating partners. In addition, the assumptions about the financial situation of the group of companies are clearly exaggerated. Schönbauer received encouragement from Barbara Teiber, the federal chairwoman of the GPA-djp trade union. This explained that Casag's actions were plans that would be socially irresponsible. It will be exciting to see how the board of directors decides this week.