Lowering costs is generally a point that is important in commercial operations. Often times, staff costs are viewed as too high and for this reason employees are often laid off. Casino Austria is also struggling with high personnel costs and for this reason would like to lay off almost 600 employees. However, there are other reasons why Casino Austria has to reduce its own costs.
Austria struggled a lot with the corona pandemic. The number of infections in this country was relatively high and this country was one of the first to react with a lockdown. The casinos operated by Casinos Austria AG were also affected by this lockdown. This fact led to a significant drop in sales. Now it’s that time again and the number of cases has increased significantly in Austria.
Apart from the corona pandemic, Casinos Austria AG has introduced a smoking ban in the casinos. As sensible as this idea sounds, it was unfortunately also bad for business: Due to the smoking ban, the number of visitors to the casinos fell. All of this led the company to adopt a restructuring program:
- Personnel costs are to be reduced by 25 percent. For this purpose, the salaries should be adjusted to each other. Currently, some employees receive three times the salary of others.
- New employees no longer receive an automatic salary increase. This is only granted if the employee takes on special functions.
- 25 percent of all employees are to be laid off. Casinos Austria AG employs a total of 1500 people.
- The two board members voluntarily waive 20 percent of their salary.
- The bonus of the two board members will be reduced by 50 percent.
- The range of on-site casinos will be reduced. This primarily affects the culinary offer.
These measures are expected to begin in 2021. The hope is that the numbers will return to the black in 2022.
Interesting facts about Casinos Austria AG
Originally it was Österreichische Spielbanken AG, which took over a number of casinos in Austria in 1967. It was not until 1985 that the company was changed to the name Casinos Austria AG. Since then, this company has had the largest tax figures in Austria. In addition, the state holds more than 30 percent stake in the group.
At the moment, Casinos Austria AG owns twelve amusement arcades, which are spread all over Austria:
- Zell am See
Valuable information about all of these can be found on the Casinos Austria AG website. There every player learns interesting facts about the welcome bonus and other promotions.
The visitor numbers confirm that the local casinos are particularly popular: In 2017, 2.85 million visitors streamed into the company’s casinos. In order to prevent loss of sales, Casinos Austria AG also offers online games. This is done in cooperation with the subsidiary win2day. It is therefore surprising that the company is now reacting with downsizing. After all, sales in online casinos have increased in recent months.
There is positive news in connection with the downsizing: The company wants to try to reduce the number of employees to be laid off. This should primarily be done by sending some employees part-time. In addition, all redundancies must first be reported to the AMS. This is the Austrian labor market service. The terminations may only be made 30 days after the notification. However, this may only be a small consolation for the employees concerned.…