Star Entertainment is preparing to cut 500 jobs and freeze salaries due to dropping revenues at its Australian casinos. The company provided a trading update to the Australian Stock Exchange on Wednesday outlining an AU$80m (US$54m) drop in its annual earnings forecast.
According to the statement: “The group is experiencing a significant and rapid deterioration in operating conditions, particularly at The Star Sydney and Star Gold Coast.” Strict regulatory restrictions on the company’s operations were cited as a major reason for the decline, in addition to emerging drops in discretionary consumer spending.
an attempt to slash costs by about AU$100m (US$67m)
Star has about 8,000 employees in total and is cutting the 500 jobs in an attempt to slash costs by about AU$100m (US$67m). The company is also selling its Sheraton Grand Mirage resort on the Gold Coast, as well as hiring consultants to review the Sydney casino’s operations.
Star Entertainment posted an AU$1.3bn (US$872m) net loss for the second half of 2022. Fines of more than AU$200m (US$134m) contributed to these losses. The casino company was recently subject to damning inquiries over allegations of money laundering and fraud at some of its properties.