Star Entertainment to cut 500 jobs at Sydney casino

The Star Entertainment Group will review its Sydney operations after a decline in revenue.

Australia.- The Star Entertainment Group has announced cost reduction initiatives in Sydney in response to a challenging operating environment. It will lay off approximately 500 full-time employees, freeze all non-essential capital expenditures and reduce discretionary spending.

It aims to reduce group operating expenses by AU$100m. Meanwhile, a strategic review of its Sydney operations, with a focus on maximising the value of its assets in the face of increased competition. It says it will explore a range of options, including potential divestment or joint venture arrangements.

Meanwhile, The Star Entertainment Group plans to sell Sheraton Grand Mirage Resort Gold Coast with indicative bids expected soon. It said it is accelerating its plans “to refinance its existing debt funding arrangements, with a focus on improving the group’s liquidity position and separately increasing covenant headroom in light of the Group’s current earnings environment.”

The company intends to engage with the NSW Government, the Queensland Government and AUSTRAC in respect of casino duty rates and flexibility on payment terms concerning any current and future penalties. In addition, it continues to work with regulators and the NSW Manager and Queensland Special Manager to remediate its businesses with the aim to return to suitability.