Wynn Macau Limited said it will not renew middle and senior-level contracts, as an attempt to manage the downfall of the Covid-19 pandemic. The Macau government said it wishes casino operators will start prioritizing native candidates.
Native Candidates For Senior-Level Jobs
Hong Kong-listed casino operator Wynn Macau Limited has announced that it will not be renewing the expiring contracts of several unidentified mid-level and senior managers, according to GGRAsia.
The decision comes after Wynn announced a 93.7% drop in its Macau properties third-quarter revenues year-on-year. The $280.7 million loss leaves the operator with revenues slightly over $67 million.
Las Vegas-headquartered Wynn Resorts owns Wynn Macau Limited, which manages two resorts in Macau, Wynn Macau and Wynn Palace Cotai. The group reportedly said that the non-renewal of the contracts is part of a “long-term plan for management succession and localization”.
Allegedly, the announcement refers to the Macau government’s wish that all casinos in the area prioritize native workers over foreign candidates to fill future senior positions.
Possible Reopenings Expected
Earlier this year, the local government demanded that casino operators avoid large-scale layoffs due to the Covid-19 pandemic.
Following the request, Melco Resorts and Entertainment Limited said that a number of senior employees had voluntarily left as part of cost-cutting decisions in the current economic crisis.
Wynn Macau Limited said that its two-star Golden Flower restaurant, located in the Wynn Macau resort, had been “temporarily closed during the pandemic period” and will reopen once the number of visitors comes back to normal. More restaurants managed by the company will reopen based on the market’s recovery.
Macau Market Slowly Recovers
Wynn Palace and Wynn Macau reopened on a reduced basis on February 20, after briefly closing for two weeks in February. Both resorts produced between 65% and 70% of Wynn Resorts’ quarterly turnover before the pandemic. Income dropped by more than 90% in six out of seven months, as Macau was hit by travel limitations and quarantines mandated by the local authorities.
However, Wynn CEO Matt Maddox mentioned during the firm’s quarterly conference call with analysts on November 5 that there were positive trends emerging in Macau. The local government has loosened travel limitations and the amount of positive Covid-19 cases has declined compared to the US.
“It feels like the market is going to get better. It’s one of the safest places on the planet.”
Matt Maddox, CEO of Wynn Resorts
Wynn Focuses On Las Vegas Venues
Wynn Resorts’ Las Vegas venues generated a cash flow of $20.3 million, while its Boston properties reported $22.3 million. Las Vegas revenues dropped by 53.3%, down to $186.7 million, but Mr. Maddox expressed that the company’s focus on its resorts on the Strip has resulted in overall improvements and progress.
Despite declines up until September 30, Wynn’s Las Vegas hotels generated about half of the company’s total revenue in the third quarter.