Coronavirus: Billionaire lays off 45,000 workers early as a ‘favour’

'Because you have them first to the unemployment line'

Billionaire Houston Rockets owner Tilman Fertitta said he's "holding up pretty damn good" after having to lay off 45,000 employees early as a "favour".

In an interview with Fox News on Saturday, Mr Fertitta - reported to be worth $4.8bn - said the 16 million unemployed were what made the crisis so sad, and why the country had to go back to work as soon as possible.

"I'm holding up pretty damn good, but I've got 45,000 employees out there that we've had to furlough that is so tremendously unfortunate, that we've got to get back to work as soon as we can," Mr Fertitta said.

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"I went through the '87 crisis, the 2000, the 2008, and it's kind of something that you realise is you're doing people a favour if you give them a furlough first because they're the first to the unemployment line after the severance that you give them.

"And it's a trick that I learned many years ago and that's why so many people are having a hard time now."

Mr Fertitta said he took out a $300m loan at 12 per cent to continue operating through to the end of the year with a cash burn of $2m a day, a back payroll of $100m plus severance, and an annual payroll of $1.5bn to fund.

His companies - including 600 properties in 30 states and 15 countries - were already preparing to reopen by ordering masks, gloves, and protective equipment.

"It's just unimaginable. We've all had to do little layoffs over the years but to have to basically shut down the whole company, when you think about having amusement parks, aquariums, restaurants all over the world, a basketball team, casinos all over, and nothing is open, it's like a sci-fi movie that you would never believe," he said.

"But we've got to get all these people back to work. And we've got to do it in a safe way."