Crown Resorts to Cut 1,000 Jobs in Sydney and Melbourne Casinos

Australian casino operator Crown Resorts will reduce its workforce by 1,000 following a significant drop in tourist revenues and tighter restrictions on gaming at its properties.

The news comes just a week after the New South Wales Independent Casino Commission (NICC) found that Crown Sydney is suitable to retain its casino license while the Victorian Gambling and Casino Control Commission (VGCCC) also announced that Crown Melbourne could retain its casino license.

Despite those developments, it has been widely reported in Australian media that Chief executive Ciaran Carruthers told staff on Monday that the company would be restructuring its operations in Sydney, Melbourne, and Perth. This would result in a staff reduction of 4% or approximately 1,000 jobs.

Carruthers noted that the company’s Perth site would see the fewest job losses as the cuts would focus mainly on the Sydney and Melbourne properties.

Speaking to the Australian Financial Review on Monday Carruthers said:

“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.

We are committed to our regulatory obligations and ongoing transformation, including Crown PlaySafe, Melbourne and Sydney transformation plans and ongoing remediation in Perth.”

Crown Resorts currently employs more than 20,000 people and is one of the largest hospitality employers in the states it operates in.

AFR reports suggest that the decision to cut jobs was made by Carruthers and not by parent company Blackstone. The US firm took over Crown in 2022 in a deal worth AU$8.9 billion (€5.6/$6.3 billion).

Earlier this year, Crown reported a loss of AU$199 million ($126.4 million/€119.7 million) during the 2023 financial year as regulatory penalties and the cost of living crisis saw the company record a loss for the third year in a row.

The company’s revenues were largely impacted by a AU$450 million (€275.3 million) settlement with The Australian Transaction Reports and Analysis Centre (AUSTRAC). The deal was agreed following an investigation which uncovered serious AML failings at Crown’s Melbourne and Perth properties.