SMB announces staff cuts after 74% drop in revenue

On Friday 2 October, the SBM, one of Monaco’s biggest employers, announced a “global restructuring plan” which includes voluntary departures and layoffs.

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The pandemic has taken a toll on the Société des Bains de Mer (SBM), the leading private company of the Riviera’s tourism industry. In the second trimester of 2020, the SBM recorded a 74% drop in revenue (source: Monaco Matin). Currently, the company counts over 4,000 employees, spread out between Monaco’s most important hotels and casinos, and 30 different bars and restaurants.

Voluntary departures and layoffs

The newly announced restructuring plan will allow the SBM to save 25 million euros a year. “The 25 million euros also include savings that are not related to voluntary or forced employee departure. We are in the process of renegotiating our insurance contracts and our contracts with suppliers, as well as getting rid of our consultants,” SBM CEO Jean-Luc Biamonti told Agence France Presse.

The SBM board has yet to announce the number of layoffs expected. The plan includes “a voluntary departure scheme, open to employees over the age of 57 years on the condition that they are not replaced”. The success of the latter initiative will then determine the number of forced layoffs, which the SMB wishes to “minimise” as far as possible. From hotels, restaurants, to casinos and cross-sector services, no SBM department will be spared.