Crown resorts set to cut 1000 jobs across three major casinos – Deets inside

Crown Resorts, one of Australia's leading casino operators, has announced plans for a significant restructuring initiative, including the elimination of up to 1000 jobs across its Sydney, Melbourne, and Perth precincts. 

This strategic move aims to address economic challenges and bolster competitiveness in the face of evolving market dynamics, particularly against leading casinos in Asia.

Chief Executive Officer Ciaran Carruthers unveiled the restructuring plan on Monday, outlining a comprehensive overhaul of operations across the three key locations. The reorganisation is anticipated to result in a 4% reduction in the workforce at both corporate and precinct levels, with Perth expected to experience fewer job losses due to its relatively robust economy compared to Sydney and Melbourne.

Carruthers emphasised the necessity of these measures, citing cost pressures and the need to position the business for long-term success. Reduced foreign tourism, declining local foot traffic in city centres, and gaming restrictions in Sydney and Melbourne have all contributed to the challenges faced by Crown Resorts, making the decision to streamline operations imperative.

This announcement follows last year's elimination of 275 positions when one of Crown's gaming floors in Sydney closed due to low foot traffic. The restructuring will entail consolidation within various divisions, including food and beverage, financial crime, design, development, and property services.

Approximately 500 jobs are expected 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.

Furthermore, there will be a reduction in the number of employees engaged in remediation and transformation efforts, following temporary expansions to address specific licensing processes in Sydney and Melbourne.

Carruthers, acting independently of parent company Blackstone, has communicated the decision to unions, regulators, and state governments. The restructuring reflects decreased discretionary spending on gambling, tourism, and entertainment, as well as the growing acceptance of remote work arrangements.

Crown Resorts has also grappled with the loss of high-end foreign gamblers, who are no longer visiting its properties due to regulatory reasons. The company has undertaken significant remediation efforts following 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, remains in a relatively stronger position compared to its major rival, Star Entertainment. However, both companies face ongoing regulatory scrutiny and operational hurdles in the fiercely competitive casino industry.