Genting Malaysia said to cut 15% of its workforce

KUALA LUMPUR: Casino-to-hospitality company Genting Malaysia Bhd. is cutting 3,000 jobs, according to people familiar with the matter.

The dismissals have already started, said the people, who asked not to be named as the matter is private.

The company, which had more than 20,000 employees in 2019, had offered pay cuts earlier this year as part of the first group-wide salary cut since conglomerate Genting Bhd was founded in 1965.

A representative for Genting Malaysia didn’t immediately respond to requests for comment.

The company’s shares surged 1.9% as of 10:17 a.m. in Kuala Lumpur while Genting Bhd. rose 1.6%, among the biggest gainers in the benchmark FTSE Bursa Malaysia KLCI index that declined 0.2%.

Companies in the Genting group, backed by Malaysian tycoon Lim Kok Thay, had proposed temporary salary cuts for employees based on their ranks, with Genting Hong Kong Ltd. suggesting up to 50% cut for those holding vice president role or higher.

The group had sought to avoid job losses as much as possible even if salary remained one of its biggest cost components, Chief Operating Officer Tan Kong Han had said at the time.

Lockdown Measures

The group that operates casinos and resorts in Las Vegas and Singapore had to scale back operations as countries imposed lockdown measures due to the Covid-19 pandemic.

The conglomerate, founded in Malaysia in 1965, is also involved in property, plantation and energy sectors as well as life sciences.

Malaysia has allowed most activities to resume since June 10, with a few number betting firms already reopening.

Berjaya Sports Toto Bhd., Magnum Bhd. and Pan Malaysia Pools Sdn. will reopen their outlets starting Wednesday, according to their websites. - Bloomberg