Twin River Can Bring The 1300 Staff Cut Issue To A Close

Article by : Helen Sep 2, 2020

The game operator is still trying to navigate the negative Covid-19 consequences. The fall in financial performance is increasingly evident in casino activities. Reducing fixed costs remains one of the most reasonable steps Twin River can take. First of all, this applies to 1,300 employees who may face cuts at any time. The general situation in the state also looks deplorable. An increasing number of people are at risk and may lose their permanent jobs. As a result, fewer and fewer locals can visit casinos and spend money on entertainment.

The state authorities are taking all necessary measures and introducing additional restrictions, regardless of the economic situation. In any case, the gambling industry continues to stagnate. The problem is unlikely to level out shortly. To return to pre-coronavirus indicators, the absolute majority of operators will need at least 2 years, or even more. This situation directly affects the changes in the landscape of the gambling market. The introduction of additional restrictions can quickly leave several of the largest companies behind. If the state decides that Rhode Island should be included in the regions that have become most affected by Covid-19, this will significantly undermine Twin River’s attitudes.

The operator has 2 commercial casinos in the region. The possible closure of land-based casino outlets could lead to further layoffs of about 1,300 employees as early as September. Twin River executives have already notified the state of the potential layoffs. According to official documents, transferred to the Rhode Island Department of Labor and Training, the current situation forces the gaming operator to take all necessary measures to reduce the company’s losses.

According to preliminary estimates, it concerns the cuts of more than 1,300 employees from two gaming houses. Twin River has announced that the final decision on possible reductions will be made before the end of next month. TRW employees had ample time to take feasible steps to find new jobs. The activities of the operator were limited a few months ago. Therefore, the bulk of the staff was forced to go on vacation without a specific return date. According to official figures, the 2nd quarter of 2020 caused more than $ 24 million in losses for the gaming brand.

Despite the possibility of restarting, the casino operated in a restricted mode. It was not able to recover its costs in such a short period. Gambling establishments were also limited in terms of the number of working hours and the number of visitors. All these factors had a detrimental effect on the company’s financial performance.

The company did not sit idly by and restore a considerable number of employees at work. Unfortunately, the brand cannot completely rule out further layoffs until the operating cost situation is optimized.

George Papanier, Twin River CEO

The company is actively cutting costs, which positively affects overall financial performance. Nevertheless, the situation with the coronavirus is unlikely to change for the better soon. The market expects TRWH to post a colossal drop in earnings due to a decline in revenue following Q2 2020 results. The metrics are vital for the financial performance of the brand. This decisive factor can significantly affect the value of a company’s stock in the short term.

If crucial financial data exceed pessimistic expectations, then the company’s stock could rally amid persistent COVID-19 infections outbreak. The results will also help the management adjust the business strategy of brand development, and determine future profit expectations, taking the current situation into account.

Helen

Chief Editor

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