Boyd Gaming Corporation has announced new measures to mitigate the financial impact of the COVID-19 pandemic.
Due to the continued closure of all revenue-generating operations, Boyd will place most of its team members on unpaid furlough effective April 11. A limited number of essential team members will remain on payroll during the closure period.
For the furloughed team members who were enrolled in the Company’s health care plans, Boyd Gaming will pay all insurance premiums through June 30 or their return to work, whichever is sooner.
“This is by far the most difficult decision we have ever made. We care deeply about the well-being of our team members, which is why we maintained full pay and benefits through April 10. Implementing furloughs was a last resort for us, but a necessary step to protect our Company, especially given the current lack of visibility regarding property re-openings,” Keith Smith, President and Chief Executive Officer of Boyd Gaming, said.
The Company also announced that its executive leadership team will be taking significant salary reductions, while the Company’s Board of Directors has agreed to suspend the Board’s compensation. Additionally, all non-furloughed members of the Company’s corporate and property management teams will take a salary cut.
The company has postponed all its non-essential spending indefinitely, and suspended all its capital projects and the cash dividend programme.
“As a result of these difficult but necessary actions, we are confident Boyd Gaming will have sufficient liquidity and resources to sustain itself until we are able to re-open for business. We will continue to carefully review our operations and expenditures during the closure period and make additional adjustments as necessary,” Smith said.