Melco Resorts offers employees exit strategies when remedial efforts are weaker
Over the past few years, Melco Resorts and Entertainment she had a hard time. It recorded good results for the second quarter 2019 but that was just a range of good news. With most of the casino operator's revenues coming from Macau, Melco has had to endure the same hardships as all the other operators in the city and is clearly struggling to recover. The company, seemingly trying to contain further losses, has announced several programs where employees will pay to quit or extend their vacation as they try to get back on track.
Melco will pay employees to leave
According to a press release, Melco has launched a scheme that will pay employees with a Macau ID an incentive if they voluntarily offer to opt out. The company calls this program a "New Chapter" scheme and offers a monthly salary to 12 people who choose to participate. The salary will be equal to the basic salary and guaranteed tips, where applicable, and will be charged as an opportunity for these individuals to "achieve personal and professional goals".
It is possible to predict it may be necessary to offer other incentives to people who do not want to look for a new job (according to statistics and Macau census unemployment in the city is less than 3%), Melco has another program available. Known as the Thinking of You program, this program will provide employees with a monthly stipend of 18% of their base salary if they choose to take extended leave that can last from six to 12 months. If they prefer, they can take holidays of between 13-18 months, in which case they would be entitled to 55% of their basic monthly salary. With this program, they can work elsewhere while collecting the money and can return to Melco at the end of the specified period.
Melco in post-COVID - 19 World
Melco said the programs are specifically for the benefit of workers, explaining that they are designed to meet "the new needs of Macao's local colleagues" and "help ease the transition as they meet new life goals and priorities." However, however altruistic it may seem, the benefits for the company also lie in reducing the workforce through voluntary departures. Melco recorded a loss in the first quarter of an amount $ 232.9 million after difficult
and must find ways to cut costs.
In addition to operations in Macau, Melco also has operations in the Philippines and Cyprus. In the first case, Manila still suffers from COVID - 19 problems which cause new problems for game operators. In the latter case, it controls most gaming operations, but a Mediterranean island nation closed its borders - and its casinos - last year due to COVID - 19. This came when Melco invested a lot of money to build a huge resort in Cyprus, a Mediterranean dream city facing delays due to a global pandemic. It is expected to open next year, more than 12 months later, and Melco will still have to tighten the belt until it starts playing operations everywhere picking up a backup.