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- Australian gambling machine manufacturer Aristocrat Leisure (ALL) will cut staff and impose pay cuts to save $100 million during the coronavirus pandemic
- The Sydney-based manufacturer is standing down 1000 staff from May 1 until June, while 200 roles will be removed permanently from the business
- Some staff will receive a 10-20 per cent cut to their salary
- CEO Trevor Croker will also have his salary reduced by 30 per cent
- Despite this, Aristocrat’s balance sheet remains strong, with over $1 billion in liquidity
- However, it has suspended its 2020 financial year interim dividend
- Aristocrat is up 1.85 per cent on market close, trading for $22.06 per share
Australian gambling machine manufacturer, Aristocrat Leisure (ALL) will cut staff and impose pay cuts as the company struggles in the COVID-19 pandemic.
The company has put in measures to save $100 million.
The Sydney-based manufacturer is standing down 1000 staff from May 1 until June and 200 roles will be removed permanently from the business.
The company also said 200 full-time roles will now be made part-time and has cut 10-20 per cent of base salaries.
Director fees will also be cut by 20 per cent, while CEO, Trevor Croker, will have his salary reduced by 30 per cent.
However, the company says 99 per cent of its global workforce is being supported to work from home.
Despite the staff cuts, Aristocrat says its balance sheet remains strong, with over $1 billion in liquidity. However, it has suspended its 2020 financial year interim dividend.
Trevor believes these changes will help maximise opportunities for the company’s staff over the longer term.
“We will continue to do everything we can to restore momentum in our land-based business as quickly as possible recognising the importance of continuing to develop and deliver game content during this period,” he said.
“These changes, and other prudent steps we are taking as part of our COVID-19 response, will deliver important operational and financial flexibility, focus and efficiency through this period of uncertainty,” he added.
Aristocrat is up 1.85 per cent on market close, trading for $22.06 per share at 4:10 pm AEST.
