1000 Jobs to Be Lost in New Crown Resorts Layoffs
Land-based gambling company Crown Resorts is reportedly planning to undergo a significant restructuring process, which will lead to a cut of over 1,000 jobs.
The development follows a recent round of layoffs by Crown Resorts earlier this year which led to 200 job cuts.
LISTEN TO THIS ARTICLE:In an email sent to staff on Monday morning, Chief Executive Ciaran Carruthers noted that the move will be majorly felt in the company's casinos in Sydney, Melbourne, and Perth.
With the plan, Crown Resorts anticipates its total workforce across corporate and precinct positions will reduce by 4%. The firm currently has about 20,000 staff working across its three casinos.
The company attributed its decision to several reasons, including harsh economic conditions and increasing strict gambling regulations in Australia.
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.
The development follows a recent round of layoffs by Crown Resorts earlier this year, which reduced 200 positions across its casinos. Additionally, the casino converted its 2600 poker machines to carded play to help customers place gambling limits.
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Crown’s Regulatory and Financial Hurdles
In its last financial year report, Crown Resorts posted a significant loss of $199 million. But that's not only the challenge the company has faced in the past 12 months.
The travails of the operator began in 2021 when investigations from two royal commissions uncovered evidence of money-laundering activities and other compliance failures in the company's operations.
Admitting to the charges, the operator reached a AU$450 million ($294m) settlement with the Australian Transaction Reports and Analysis Centre (AUSTRAC) in 2023.
In the same year, it was fined AU$ 20 m ($13.8m) by the Victorian Gambling and Casino Control Commission (VGCCC) for breaching tax rules in Victoria.
To retain its license in the affected jurisdictions, Crown embarked on a transformation effort aimed at improving its operations, and culture and meeting regulatory standards. These internal reforms cost the company nearly $200 million.
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