Monaco – Société des Bains de Mer de Monaco confirms cost reduction planBy Phil - 8 March 2021
The Société des Bains de Mer de Monaco has finalised its cost reduction plan due to the coronavirus pandemic with savings expected to reach €18m a year.
“As announced a few months ago, the health crisis linked to the Covid-19 epidemic and the economic shock caused has forced Société des Bains de Mer to accelerate the implementation of a global restructuring plan , particularly in social matters. This has been made particularly necessary due to a chronic deficit in its hotel and restaurant operations and in its casino activity, linked in particular to a level of salary costs that was inadequate with the level of turnover generated, this restructuring work was carried out with success.”
The restructuring plan led by the SBM includes a voluntary departure plan, open to group employees over the age of 57, on the essential condition of non-replacement, under which the candidacy of 227 employees was retained. There is also a forced collective departure plan ultimately limited to a maximum of four people, most of the departures targeted in certain departments for reasons of overstaffing or reorganization aimed at restoring competitiveness which may have been reclassified.
These savings, supplemented by the actions taken elsewhere to better adapt the level of charges to seasonal fluctuations of activity, should allow the group ‘to obtain an annual reduction in its operating expenses of around €25m, which will allow it to return to a level of profitability allowing it to ensure the investments necessary for its sustainability, as soon as the health crisis has passed.’