Crown Resorts has announced plans to cut up to 1000 jobs across its three casinos as part of a significant restructure aimed at mitigating economic challenges and ensuring competitiveness against leading casinos in Asia.
Chief Executive Officer Ciaran Carruthers revealed on Monday that the company would reorganize operations in Sydney, Melbourne, and Perth, resulting in approximately a 4% reduction in employees at corporate and precinct levels.
Perth is expected to experience fewer job losses due to its stronger economy, The Australian Financial Review reported.
Carruthers, who had previously highlighted cost pressures, described the decision as difficult but necessary to position the business for long-term success. Crown Resorts currently employs around 20,000 individuals across its three precincts.
“The challenges at Crown reflect greatly reduced foreign tourism, a sharp decline in local workers in the city centres, and restrictions on gaming play in Sydney and Melbourne,” Carruthers was quoted as saying in the report.
These job cuts come after the elimination of 275 positions last year when one of Crown’s gaming floors in Sydney closed due to low foot traffic.
Sources familiar with the restructure indicated that teams within various divisions such as food and beverage, financial crime, design, development, and property services would be consolidated.
Approximately 500 jobs are anticipated to be cut from Crown’s corporate division, with the remaining 500 from staff employed in the respective casinos, primarily in Melbourne and Sydney. Notably, the job losses in Sydney are concentrated in the corporate division rather than the precinct.
Additionally, there will be a reduction in the number of people employed in remediation and transformation following temporary expansion to address specific licensing processes in Sydney and Melbourne.
The decision, made by Carruthers independently of parent company Blackstone, was communicated to unions, regulators, and state governments. It reflects decreased discretionary spending on gambling, tourism, and entertainment, as well as increased flexibility in remote work arrangements.
Crown Resorts has also been affected by the loss of high-end foreign gamblers, who are no longer visiting its properties for regulatory reasons. The company has undertaken significant remediation efforts following revelations of breaches of anti-money laundering and counterterrorism laws in Melbourne and Perth in 2021.
Despite these challenges, Crown Resorts, which was acquired by Blackstone for AUD 8.9 billion in 2022, is in a relatively stronger position compared to its major rival, Star Entertainment. However, both companies continue to face regulatory scrutiny and operational challenges in the highly competitive casino industry.