NagaCorp Limited has launched a cost-cutting initiative in Cambodia.

It has been claimed that NagaCorp Limited, the operator of the NagaWorld casino in Cambodia, would be laying off a large portion of its workforce and reducing wages as part of a series of 'proactive steps' the company plans to adopt.

An official filing made by the Hong Kong-listed company earlier today, as reported by GGRAsia, explains how this move is essential to safeguard the viability of the 700-room facility in the face of financial difficulties caused by the current coronavirus outbreak. An insider said that after eleven employees tested positive for the potentially fatal illness, the 185-acre property was stopped for 14 weeks last year and again as of March 1.

Easily explained:

According to reports, NagaCorp Limited stated on March 1 that the layoffs had begun on that day as part of "a rationalisation programme" meant to "improve cost efficiencies" after the emergence of the coronavirus epidemic. To help them transition into "other career or business interests," the company reportedly stated that under this plan, laid-off NagaWorld employees would get "enhanced termination compensation" in addition to the "payments required by the applicable Cambodian laws."

A statement from NagaCorp Limited was reportedly read.

We anticipate that these and other adjustments we have made as part of our coronavirus plan will facilitate a speedy recovery to business as usual and the maintenance of long-term financial security.

Home-field advantage:

In 2003, NagaCorp Limited unveiled the 16-story NagaWorld complex, which featured a casino with more than 1,500 slot machines and 169 gaming tables. To ensure that no other gambling establishment is allowed to open within a 124-mile radius of Phnom Penh until at least the end of 2045, the operator recently signed an agreement that extends the exclusivity provision linked to the venue's gaming licence by another 10 years.

Mass terminations:

Up to 1,300 jobs, according to a local trade organisation that spoke with GGRAsia in April, may be lost if NagaCorp Limited elected to execute such a drastic cost-cutting effort. However, since then, the operator has reportedly been hesitant to reveal the precise number of anticipated layoffs, only willing to assert earlier today that conversations with individuals affected are "ongoing."

According to NagaCorp Limited's registration, the company...

The majority of impacted workers have signed amicable separation agreements as of the date of this release.

Overflowing safes:

To wrap up, NagaCorp Limited allegedly said that monthly operational costs at NagaWorld are projected to decrease by around 23% to around $6.6 million, while related expenditures are expected to decrease by 60% to around $2.3 million as a result of the cost-cutting programme. It also allegedly said that it had $451.7 million in cash and deposits, which is enough to "support more than six months of operating expenditure and interest expenses."