Crown Confirms Restructuring, Initiates 1,000 Job Cuts

Crown Resorts, one of the leading gambling and entertainment operators in Australia, was tangled in a legal hurdle a few years ago after two probes into its operations claimed breaches of anti-money laundering and other regulations. The operator was accused of collaborating with junket operators with ties to criminal organizations.

As a result, Crown was found unsuitable to hold its three casino licenses. Subsequently, the operator agreed to collaborate with the gambling regulators in the country and invest money to address the potential deficiencies. In 2022, Crown was acquired by Blackstone for a whopping AU$8.87 billion ($5.8 billion).

Now, a newly released report suggests that restructuring, initiated by Crown, meant to address weak economic conditions, may result in job cuts by Crown Resorts. On Monday, the Australian Financial Review reported that up to 1,000 jobs across three of the operator’s casinos may be affected. The redundancies are expected to affect Crown’s casinos in Melbourne, Sydney, as well as Perth.

The move comes as a restructuring pushed by Crown which seeks to ensure its competitiveness with casinos across Asia. Moreover, the company seeks to reduce its workforce in order to address challenges such as reduced spending on gambling, as well as declines related to tourism. Ciaran Carruthers, the company’s chief executive, confirmed the restructuring that would affect Melbourne and Sydney primarily. Crown’s Perth operations will experience fewer losses primarily because of its strong economy.

Job Cuts to Affect Melbourne and Sydney Primarily

The upcoming job cuts come at a time when Crown already slashed a number of positions last year. At the time, the company cut approximately 270 positions due to a decrease in visitation which pushed it to close one of its gaming floors in Sydney.

The new restructuring is expected to affect an estimated 1,000 jobs. Some 500 casino employees and 500 workers within Crown’s corporate division may be affected by the redundancies. As noted, the majority of the job cuts are likely to affect Crown’s Melbourne and Sydney properties. In Syndey, the redundancies are going to affect only the operator’s corporate division.

In light of the legal hurdle, Crown has so far paid an estimated AU$700 million ($458.8 million) in different penalties. Moreover, the operator was forced to invest some AU$200 million ($131.1 million) for remediation.

The money spent in combination with efforts are showing significant difference in the cultural transformation for Crown when compared to its rival, Star Entertainment, which was also tangled in regulatory scandal. Crown was recognized for its dedication to remediation, addressing challenges and effectively collaborating with the gambling regulators. Last month, the operator was found fit to hold a license for its Melbourne property.