COO Richard Leven told Bloomberg that LVS would be cutting 4k more jobs in Hong Kong and Macau. Anticipating potentially negative governmental relations, Levin indicated that Macanese workers would not be impacted.
The cost implications of this are obviously positive. The company targeted a total of $470 million in cost cuts. Investors are understandably very skeptical. Of the $470 million, $270 million is earmarked in Macau. We estimate cutting 4,000 employees amounts to about $50-60MM in savings on top of the headcount reductions already in place, dealer pay cuts, and reduced marketing and promotions. Investors may want to reset their level of skepticism.