The City of Dreams Mediterranean Casino Resort in Limassol is reducing staff due to the impact of the war in Israel, leading to decreased hotel occupancy and fewer international visitors. Melco, the operator, aims to ensure the resort’s long-term success and sustainability amid challenging circumstances by laying off 130 staff members and not renewing contracts for 51 probationary employees, while providing support and assistance for the impacted individuals.
Why is the City of Dreams Mediterranean Casino Resort in Limassol reducing staff?
The City of Dreams Mediterranean in Limassol is reducing staff due to the impact of the war in Israel, which has led to decreased hotel occupancy and fewer international visitors. A total of 181 employees are affected, with Melco, the operator, aiming to ensure the resort’s long-term success and sustainability amid challenging circumstances.
Staff Reductions at City of Dreams Mediterranean
The City of Dreams Mediterranean, a prominent integrated casino resort in Limassol, has announced a significant reduction in its workforce. On Monday, the resort’s operator, Melco, revealed that 181 employees would no longer be part of the company. This decision, as stated by Melco, is a direct consequence of the ongoing conflict in Israel, which has led to a sharp decline in hotel occupancy and a noticeable drop in international visitors to the casino.
Measures for Long-term Success
Faced with these challenging circumstances, Melco has taken what it describes as “difficult decisions” concerning its cost structure. These decisions are aimed at securing the resort’s sustainability and success in the long term. In total, 130 staff members have been laid off, and 51 probationary employees have found their contracts non-renewable, with all these changes taking place from Friday to Monday.
Selection Process and Legal Compliance
Melco has clarified that the process for selecting the employees who would be let go followed an “objective principle of ‘Last-In, First Out’.” This approach is in compliance with the regulations set forth by Cypriot law concerning redundancies. Such a principle ensures that the process is fair and regulated, respecting both the employees and the legal framework within which the company operates.
Support for Impacted Employees
Beyond fulfilling its legal obligations, Melco has pledged to provide additional support to those affected. The company is offering “ex-gratia” packages, which are voluntary payments that surpass both the legal minimum requirements and common industry practices. These packages are meant to ease the financial burden on the former employees as they seek new employment opportunities.
Melco is actively contributing to the search for alternative employment for its former staff. To date, the company has facilitated potential employment with at least 18 local companies and nine international firms. Moreover, Melco is assisting impacted employees with CV preparation, interview skills training, and other support services required during this challenging transition period.
Context of the Layoffs
Prior to the official announcement by Melco, there was speculation and reports concerning mass layoffs at the casino resort. Rumors indicated that up to 300 individuals had been dismissed in recent weeks, but the confirmed number, as released by the company, stands at 181.
Looking Ahead
The resort continues to adapt to the current economic and geopolitical climate. With the support measures in place, Melco is focusing on helping its former employees while also restructuring in a way that will allow the resort to weather the ongoing crisis and emerge resilient for future operations.
Quick Recap
- The City of Dreams Mediterranean Casino Resort in Limassol is reducing staff due to the impact of the war in Israel, leading to decreased hotel occupancy and fewer international visitors.
- Melco, the operator, aims to ensure the resort’s long-term success and sustainability amid challenging circumstances by laying off 130 staff members and not renewing contracts for 51 probationary employees, while providing support and assistance for the impacted individuals.
- Melco has taken “difficult decisions” in order to secure the resort’s sustainability and success in the long term, with staff reductions taking place from Friday to Monday.
- The selection process for staff reductions followed the principle of “Last-In, First Out” in compliance with Cypriot law, ensuring fairness and adherence to regulations.
- Melco is providing additional support to impacted employees, including voluntary payments beyond legal requirements, assistance with job search, and support services during the transition period.
