COVID-19 compels Okada Manila to let go over 1,000 employees

Integrated resort-casino Okada Manila has informed its staff that it will be reducing the company’s workforce due to revenue losses brought about by lockdown measures to contain COVID-19.

“Okada Manila announces with deep regret that it will be reducing its workforce via a retrenchment program,” Okada Manila president Takashi Oya said in an internal memo dated May 26, 2020.

“It is a reality that the company could not escape because of the new normal that lies ahead of us,” Oya said.

The Okada Manila chief went on to explain that the casino-resort is not having revenues since the lockdown, which has been “financially draining” and caused severe losses to the company.

“[I]f this is not addressed, its losses will pile up,” Oya said.

With this, he said, Okada Manila is constrained to operate on a smaller workforce.

“For it to remain a viable business, it will have to let go of more than 1,000 employees,” he said.

“This extremely difficult decision is not a reflection of the work that its Team Members have done,” he noted.

JUST IN: Integrated resort-casino Okada Manila informed its staff of retrenchment of more than 1,000 employees due to losses brought by lockdown measures vs. COVID-19. @gmanews pic.twitter.com/nAQep5nO82

— Ted Cordero (@Ted_Cordero) May 27, 2020

On March 15, the Philippine Amusement and Gaming Corp. (PAGCOR) suspended all land-based casinos, electronic games, bingo, sports betting, poker and slot machine clubs, and other activities in response to government directive to impose strict quarantine measures in Metro Manila and eventually the entire Luzon island to arrest COVID-19 spread.

While the enhanced community quarantine in Metro Manila has shifted to a more relaxed modified enhanced community quarantine and is expected to shift to general community quarantine, resumption of gaming operations are still uncertain since the government has not given definite guidelines for the gaming sector’s reopening.

“Those who will be affected will receive their notice starting June 15. They will receive a separation pay in accordance with law,” Oya said.

“For those who will remain, they will continue to build Okada Manila’s readiness to the new normal and provide the same Five-Start experience that it is known for,” he said. — RSJ, GMA News