Crown Resorts announces significant job cuts

Rachel Rigby May 2, 2024

SiGMA news

Crown Resorts announces significant job cuts

Impacting the hospitality and gaming industry, Crown Resorts, owned by the global investment firm Blackstone, has announced its decision to reduce its workforce substantially. According to a recent report by Reuters, the company plans to eliminate up to 1,000 positions across its operations in Melbourne, Perth, and Sydney. This decision comes in response to a number of challenges currently facing the business.

Job cuts of significant size

Crown Resorts, a large player in the luxury entertainment and gaming sector, employs over 20,000 individuals in a variety of roles at its upscale resorts. These job cuts represent a significant reduction in its workforce, a move that Crown’s CEO, Ciaran Carruthers, attributes to several factors.

The announcement of job cuts follows the Crown’s Sydney branch being officially granted the ability to maintain its casino licence, a decision endorsed by the New South Wales Independent Casino Commission (NICC). This comes on the heels of Crown Melbourne receiving regulatory approval from its local gambling authority, the Victorian Gambling and Casino Control Commission (VGCCC), just a month prior.

This step reaffirms Crown’s dedication to meeting industry regulators’ rigorous standards and emphasises the need for continuous improvement and compliance in the gaming industry.

Reputation damage

The company’s reputation and finances have been significantly strained following a series of investigations and penalties. Last year, Crown agreed to pay A$450 million (approximately US$296 million) as a settlement over failures in its anti-money laundering measures. This settlement came after a thorough investigation by AUSTRAC, Australia’s financial crime watchdog, which highlighted serious lapses in Crown’s compliance with anti-money laundering protocols.

As Crown Resorts navigates through these tumultuous times, the decision to streamline its workforce is seen as a necessary measure to stabilise the company and ensure its long-term sustainability. The impact of these job cuts will be closely watched by industry observers, as Crown Resorts attempts to regain its footing in the competitive entertainment and hospitality market.

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