Galaxy Entertainment Group has announced that it will not offer a discretionary bonus to employees at all levels as it did annually in recent years.
In a video announcement made to employees by the vice-chairman of the group, Francis Lui, the executive remarked, “the company expects an unprecedented setback in 2020 earnings. Thus, it is inevitable for the company to make these difficult decisions.”
It was also announced that the gaming operator would extend some temporary unpaid leave arrangements until the end of 2020, adding that it is suspending its contributions to employees’ private pension funds until the situation improves.
Traditionally, gaming operators offer two discretionary bonuses each year equivalent to one month’s salary per bonus period. The concessionaires usually announce discretionary bonuses every January and July to all eligible full-time employees in recognition of their contributions to the company.
However, to date, no gaming operator has yet announced a second discretionary bonus this summer, following the bonuses made before Chinese New Year.
June was the fifth consecutive month that gaming revenue plummeted. Year-to-date revenue is down 77.4% from 2019 levels.