Aristocrat, Bloomberry Update Positions as COVID-19 Crisis Continues

  • Aristocrat laying off 1,000 employees through June, permanently cutting 200 positions
  • Base salaries of around 1,500 employees at Aristocrat will be cut by 10-20%
  • Bloomberry may post an annual loss due to casino closures in the Philippines
graph representing the stock market crash caused by coronavirus
Aristocrat and Bloomberry have updated their positions to reflect heavier losses than anticipated due to COVID-19. [Image:]

Gaming companies impacted by the virus

Aristocrat Leisure Ltd and Bloomberry Resorts Corp are two gaming companies feeling the effects of the COVID-19 crisis. Both companies have updated their positions as the virus lingers, each facing more losses than previously anticipated.

Aristocrat and Bloomberry are looking to reduce costs in order to see a lesser impact as a result of the virus pandemic. Aristocrat is cutting jobs and laying off employees. Meanwhile, Bloomberry, has confirmed that it may post a loss this year due to the suspension of casino operations.

Reducing costs during COVID-19 crisis

Aristocrat is an Australian slot machine company that is currently one of several companies affected by COVID-19. Aristocrat has revealed it is laying off 1,000 staff members through the end of June 2020. The majority of these individuals are in land-based sales, service, and manufacturing operations.

Aristocrat has revealed it is laying off 1,000 staff members through the end of June 2020

Aristocrat will also permanently cut 200 jobs as the company works to reduce costs during the pandemic. The recent changes do not affect the Asia team of the company. All staff members in Asia will retain their roles. The company has also promised to increase the region’s content production.

An update was provided to ASX by Aristocrat, with the company revealing that until September, the base salaries of around 1,500 employees will be cut by 10-20%. Company directors also face a cut of 20%, with CEO Trevor Croker slashing his base salary by 30%.

Croker said: “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.”

Aristocrat emphasized that its global cuts were necessary due to ‘people costs’ creating around 70% of the operating expenses of the company.

Bloomberry Resorts hit hard

Bloomberry Resorts is another company dealing with the COVID-19 crisis. As an Asian-facing casino operator and developer, Bloomberry may face a record loss for 2020 due to casino operations being suspended in the Philippines.

Casinos have been closed in the Philippines since mid-March. Bloomberry operates the Solaire Resort and Casino located in Manila at Entertainment City.

suspensions and social distancing measures applied after reopening could result in an annual loss

Bloomberry chairman and CEO Enrique Razon spoke with Philippine media. He said that suspensions and social distancing measures applied after reopening could result in an annual loss.

According to the CEO, the plan is to reopen and then test everyone. It is unclear if the CEO was referring to testing only employees or customers as well. Razon stated that gaming would be at 20% of the usual capacity with physical distancing measures in place as well as mandatory mask-wearing.

The casino shutdown in the Philippines is in effect until May 15. At that time, the local government will decide if the quarantine needs to last longer in order to continue to fight the COVID-19 outbreak.

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