Singapore, July 15 (BNA): Resorts World Sentosa, one of Singapore’s biggest private sector employers, on Wednesday said it was laying off staff to cut costs as the coronavirus pandemic batters the city-state’s tourism industry.
The company, owned by Genting Singapore Ltd, did not disclose how many jobs will be lost, but the local Straits Times newspaper said the cuts were “significant,” according to Reuters.
Resorts World Sentosa employs 12,500 and its facilities, spread over 49 hectares, encompasses a hotel, a casino and a Universal Studios theme park among other attractions.
“We have made the difficult decision to implement a one-off workforce rationalization,” it said in a statement.
Singapore’s economy plunged into recession in the second quarter, shrinking a record 41% from the previous quarter, data showed on Tuesday, putting it on track for its deepest slump ever.
The tourism industry, which contributes about 4% to Singapore’s economy, has been one of the worst affected sectors due to travel restrictions and a lockdown that lasted more than two months to curb the spread of COVID-19.
“COVID-19 pandemic’s impact on the tourism industry is unprecedented, immediate, and immense,” Singapore’s National Trades Union Congress said in a statement on the job cuts.
It added that it was working with Resorts World Sentosa on compensation terms, and would help affected employees with training and finding new jobs.
The company had only announced last year it would invest about $4.5 billion ($3.2 billion) to expand its tourist attractions in the city-state.
Shares of Genting Singapore, majority owned by Malaysian conglomerate Genting Berhad, were up about 1% in line with the broader market.