In an attempt to protect itself from expected declines in Macau’s future VIP gaming market, Asian casino operator Melco Resorts and Entertainment Limited has reportedly launched a scheme to offer up to $62,000 in severance pay to pit managers.
The Hong Kong-based company is also applying for permission to encourage some of these employees to train for non-game positions or to take up to a year off with unpaid leave.
Melco Resorts and Entertainment Limited reportedly says its job cuts plan is “100% voluntary” and is being offered to people employed within Studio City Macau, City of Dreams Macau and Altira Macau Integrated Casino Resorts. It also declared that the plan was designed based on results through the ‘Focus Group and other peer human resources [department] communication channels and included options for workers to provide at least a month of unpaid leave.
Senior pit managers at casinos in Macau can earn up to $59,000 a year, and Melco has come up with a new plan in a way to encourage employees to start small businesses. The game company said it will then invite such new companies to receive the rights to provide products and services.
Refusing to elaborate on how many of the company’s employees applied for any aspect of the new plan, it stated that ‘numerous pit manager colleagues expressed excitement about the opportunities and possibilities available.’
The pit manager job is now widely considered a “safe” position within the Macau casino industry, which provides university-educated locals with the opportunity to earn an average of about $35,500 a year across the city. But recent government policies designed to promote full statistical employment are reportedly making it increasingly difficult for the city’s casino operators to respond to market conditions by laying off or redeploying employees.