Massive job cuts at the Austrian Casinos Austria AG

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Peter Brandt July 3, 2020

The financially heavily struck Austrian casinos Austria AG has published details on the planned job cuts as part of the renovation package. The information and details were announced by the gambling giant some time ago. In a report by the daily courier, concrete figures have now been published. The planned job cuts are significantly larger than was previously assumed. A total of 427 full -time positions are to be stamped by the beginning of next year. As a result, 27 percent of all full-time employees are threatened by unemployment. However, the sales figures speak a clear language, in all likelihood again next year.

The casinos Austria have opened their doors for guests again, but the Corona pandemic has seriously added to the giant giant giant. ((©BigAmount/Pixabay)

The workforce hits the job cuts and salary cuts

The planned job cuts in the course of the renovation package of the Casinos Austria AG However, not only affects the area of full -time employees, but will also affect the area of part -time positions massively. However, there are no exact figures for the places to be stroked. For this purpose, a decision will be made on July 8th on the special supervisory board. However, experts estimate that locations in particular with a low -turnover locations with one Agency of employees by up to 55 percent have to calculate. However, all 12 locations of the Casinos Austria are affected by the renovation package. Even the top-selling draft horse, the Casino Vienna, is expected to relieve 43 employees in the area of full-time employees alone.

Casinos Austria has been showing red numbers for years. Casinos Austria AG runs a casino at twelve locations. These include the casinos in Baden, Bregenz, Graz, Innsbruck, Kitzbühel, Kleinwalsertal, Linz, Salzburg, Seefeld, Velden, Vienna and in Zell am See. After the almost three-month interim closure due to the Corona pandemic, the casinos were able to open their goals again on May 29. However, the possibility of a visit has so far been perceived by significantly fewer people than it was the case before the Corona crisis. This is certainly due to the uncertainty of the people and the strict hygiene measures that make playing less pleasant. However, the number of visitors has been declining for years. This becomes clear, among other things, by comparing the number of guests from 2000 (1.98 million visitors) and 2019 (1.23 million visitors).

The renovation package does not only have a negative impact on the employees who are at risk of termination. The employees who are still with gambling giants must also expect salary. In conversation is one Cutting of all salaries by 15 to 20 percent. The salary cuts alone save around 11 percent of personnel costs. The announcement at the staff representative of the Casinos Austria was accepted accordingly negatively. In conversation with the Press Agency APA, the spokesman for the workforce illustrated their displeasure.

They were particularly outraged about the time and the way the information distribution. All employees would only have received wind from the renovation package from this planned step by the report in the media. It is also outrageous that the number of dismissals is communicated by several hundred employees in this way. However, the compulsion to save also runs through all areas of the employees. In this way, various positions are no longer filled in the field of managers. Of currently 113 should The number of managers reduced to 75 will. In relation to possible salary cuts on the board, there was no specific information, which understandably did not improve the state of mind of the workforce.

Prospects for the coming year are also negative

The almost three-month lockdown due to the outbreak of Corona pandemic has hit the casinos Austria economically. However, the numbers have not been good for several years. In addition to a stricter competitive situation through partly illegal online casinos, the smoking ban has also led to the number of visitors and sales steadily dropped in recent years. With its effects, Corona pandemic has now massively tightened the situation. Around 47 million $ loss are targeted for the current year – at least according to official information. Information from insiders from a document from the Supervisory Board even reports about a minus of 64.7 million $ . The job cuts and the salary cuts are therefore a logical step in the renovation package.

Nevertheless, the board will also expect around 13 million $ in the next year. It is only from 2023 that the renovation concept should work properly and promise black numbers again. According to the first forecasts, these should predict a profit of almost 10 million $ . Although the gambling giant will continue to continue to write red numbers, the company should can be continued in all twelve locations. It is unlikely whether this project calms the representation of the workforce on the basis of the current situation.