( Kuala Lumpur, 22 May 2020 ) Genting Malaysia (GENM, 4715, Main Board Consumer Products Services Group) confirmed that it will start restructuring operations and reduce manpower, but did not disclose the number of layoffs.
There were reports yesterday that the group would lay off 10 to 20% of its employees.
Genting Malaysia stated in a statement today that in response to the challenges posed by the coronary disease pandemic, the group has adopted austerity measures to ensure the long-term sustainability of its business. At the beginning of the coronary disease pandemic, the management team voluntarily cut salaries by 20%.
"In order to further manage costs and mitigate the adverse financial impact, Genting Malaysia must evaluate and readjust the cost structure, including personnel requirements, based on current and expected future operating capabilities."
Genting Malaysia's business provides Malaysia with more than 70,000 job opportunities, including its own employees, third-party businesses, local suppliers and contractors. Unfortunately, as the coronary disease pandemic continues, the company's finances will continue to suffer. Therefore, a very difficult decision must be made to restructure its Malaysian operations and adjust its staff size.
Despite the reorganization, when Resorts World Genting (RWG) reopens, it is confident that all facilities and products will be operational.
Resorts World Genting is expected to continue construction of its outdoor theme park, which will open in the second quarter of 2021. The theme park will be named "Genting SkyWorlds" and will have themed attractions of international-level movies, including movies from the 20th century Fox.
Genting Malaysia said that the tourism, leisure and hospitality industry and gaming industry were the hardest hit by the coronary disease pandemic, and the group was not spared from this unprecedented difficult moment.
Resorts World Genting has been closed since March 18, the first time in 55 years since its establishment. Due to the severe impact of coronary disease on the domestic and global economy, when the business resumes operations, Genting Malaysia will face challenges before resuming the business level before the pandemic.
During the long-term shutdown, Genting Malaysia continued to bear significant costs to maintain its infrastructure, facilities, employee benefits and other operating costs. The prospect of coronary disease is still uncertain due to the reduction of personal disposable income, changes in customer behavior, restrictions on crowd gatherings, social distance requirements, and long-term travel restrictions.
In addition, upon reopening, Resorts World Genting will respond to and adapt to the “new normal” of strict operations to protect its customers and employees. For these reasons, business recovery in the short term is expected to be extremely challenging.
The pandemic pandemic has temporarily interrupted its global operations. Genting Malaysia suffered a net loss of RM417.96 million in the first quarter of 2020. The group expects its financial performance and operations to remain uncertain in the rest of the year.
**Info & Image are taken online
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