Why Skycity Casino to slash 700 jobs? | Market Update

  • May 11, 2020 NZST
  • Team Kalkine

Z Energy has announced a capital raising of up to $350 million after declaring a full-year loss of $88 million after being hit by lower fuel margins and reduced refining margins. The loss compares to a $186m profit in the prior financial year. Z chief executive Mike Bennetts said the full-year result highlighted the competitiveness of the retail fuel market and the severity of the low refining margins it saw in the last quarter. Bennetts said the onset of Covid-19 had created unprecedented conditions with a high degree of uncertainty for many businesses. He said during the first four weeks of lockdown under level 4 Z had seen an 80 per cent reduction in retail fuel volumes sold, an 85 per cent decline in jet volume and 60 per cent fall in commercial fuel sales.

Casino operator SkyCity Entertainment Group has revealed "incredibly difficult" plans to slash another 700 jobs which a union says is mainly in Auckland and almost a third of the approximately 3000 part and full-time jobs there. The company is blaming "weaker economies, lower personal disposable income, changed entertainment habits, restrictions on mass gatherings and physical distancing requirements" and long-term travel restrictions for the decision. SkyCity chief executive officer Graeme Stephens said the company had already restructured its management team and its salaried employee base. In early April, the company announced about 200 job cuts to reduce costs, saying the Covid-19 crisis had caused "an unprecedented impact on people, businesses and the global economy. Under the Work and Income wage subsidy scheme, SkyCity Management got $21.7m for 3272 employees, as of May 3.

Trade Me is offering $1 million of spare advertising to help small businesses affected by Covid-19. Trade Me’s head of audience, Ivan Fuyala, said it was a way the company could support the community during this tough time. Trade Me had seen a drop in advertising demand from agencies and advertisers but still had a lot of users on the site. That gave it spare advertising inventory that could be used to help small businesses. Fuyala said that small businesses that had used the site in the last 12 months could apply. Trade Me will select up to 40 businesses who would then get the benefit of free display advertising on the Trade Me platform.

#covid19impact #trademeNZ #casinoonline

 


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