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Genting Casinos is set to axe more than 1,600 jobs and close three UK sites as it seeks to cut costs to weather the fallout from the pandemic.

The gambling firm said it had suffered 'heavy losses' in recent months as the coronavirus outbreak forced its casinos to shut. They are yet to reopen.

As a result, it said 1,642 employees could face redundancy, adding it was 'only right' to lay off staff in roles that are not likely to be retained rather than keeping them on furlough.

A Genting spokesman said: 'The Job Retention Scheme is just that and therefore when it became clear to us that a significant number of roles could likely not be retained, it was only right to begin the redundancy consultation process rather than continuing to take government money via the furlough scheme.

'We are having to make some heart-breaking decisions about the future of the business and it is with huge regret that job losses are simply unavoidable.'

The firm also intends to permanently close three of its clubs at Margate, Torquay and Bristol because they are no longer financially viable.

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The gambling giant is the latest company to announce mass layoffs as the pandemic lays waste to the leisure industry.

Concerns are mounting that many more companies will cut staff as they look to shore up their finances when the Government's furlough scheme is tapered back from next month.

Mick Rix, national officer at the GMB union, said: 'Taxpayers' cash has funded Genting to the tune of millions of pounds during lockdown – now they are making people redundant rather contribute towards the Government furlough scheme from the end of August.'

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Genting said it plans to reopen all of its other 29 sites but with significant changes to physical premises and its operating model.