Roughly two weeks after an order from Nevada's governor forced all casinos to close during the coronavirus pandemic, Caesars Entertainment (NASDAQ:CZR) is announcing a furlough for approximately 90% of its workforce. Caesars said it will continue paying wages during part of the furlough.
The furlough will affect casino employees as well as those who work in Caesars' corporate offices. The company said it will retain only a "minimum workforce needed to maintain basic operations." The company's statement apparently clarifies and replaces an earlier letter to Nevada officials saying that up to 3,200 of the layoffs might be permanent.
Caesars has additionally pledged to pay the workers their normal wage through the first two weeks of the furlough. After this period, employees can opt to use any accumulated paid time off. According to Caesars, it also will pay all employee insurance premiums in full "through June 30, or their return to work, whichever comes sooner," a potentially important consideration during a pandemic.
The entertainment company already canceled and refunded all booked hotel reservations that would have otherwise fallen within the span of the temporary shutdown. Live entertainment has been suspended through April 30 at least, with refunds also issued for any reservations affected.