SkyCity considers 200 job cuts in New Zealand restructuring

SkyCity is considering cutting around 200 jobs across its New Zealand operations as the casino operator moves ahead with a major restructuring programme.

The proposed cuts are expected to affect employees primarily at its Auckland casino, which has around 2,860 staff. 

Staff consultation under way

Consultation on the proposed changes has begun and is expected to continue over the next two weeks.

"No decisions have been made. We'll consult with our people before anything is finalised, and our focus remains on supporting them through any change and on building a stronger SkyCity," Walbridge said as quoted by the New Zealand Herald.

The restructuring comes as SkyCity deals with weaker economic conditions and rising pressure on its operations.

"The economic conditions facing our business are real, and they require us to make some hard choices about how we're set up for the future," the CEO said as quoted by the Herald.

"We're reshaping how our people are deployed across the group, so we're simpler, smarter, and more connected."

Restructuring targets cost savings

SkyCity is targeting annualised savings of $30 million in FY27, with total benefits expected to reach $70 million in FY28.

"We are becoming a simpler, smarter, and more connected business , actioning further savings to deliver annualised benefits of $30m in FY27 and growing to total benefits of $70m in FY28," Walbridge said.

"This is a strategic response to our evolving operating environment and the future direction of our business, including the regulation of online gambling."

The proposed workforce reduction follows a difficult financial year for SkyCity. Its net profit fell 38% to $18.2 million, while underlying profit dropped 47% to $38 million.

Union pushes back against proposed cuts

Unite Union, which represents SkyCity employees, has called on the company to retain its workforce despite the proposed restructuring.

"Profitable companies like SkyCity should keep people employed in these challenging economic times, they can afford to and should," Tali Williams, Unite Union assistant secretary, told RNZ.

Williams said potential job losses would add further pressure on employees already dealing with rising living costs and a challenging labour market.

"Workers are already dealing with the high cost of living and a very difficult employment market, and the last thing they need is the uncertainty of losing their livelihood," the assistant secretary added.

SkyCity is expected to make decisions on the affected roles after completing its consultation process.