Crown Resorts and Entain plan job cuts in Australia as part of corporate restructuring
Two of the most impressive players in the Australian gambling industry are making a difference. Crown Resorts is downsizing its Crown Sydney properties and online gaming giant Entain plans to cut 80 per cent of its workforce in the country.
These changes occur against a backdrop of different corporate attitudes.Crown Resorts is still facing huge fines for knowingly dealing with money launderers and war criminals. Entain is reportedly experiencing growth in the country but plans to cut redundant positions.
It's unclear whether the layoffs will be permanent or whether the hundreds of laid-off employees will have a chance to return. The losses are part of a trend that has seen Australia's unemployment rate rise to 3.7 per cent from 0.2 per cent in July, according to the Australian Bureau of Statistics.
Crown closes VIP room
According to the Sydney Morning Herald, Crown has completed a "mahogany" level construction at Crown Hotel in Sydney. This is one of two VIP areas of the casino that new Crown owner Blackstone decided must remain dark for the time being.
A company representative blamed the closure on "macroeconomic challenges" facing the Australian economy. The casino is located in New South Wales, which increases the amount of excise tax the gambling company must pay.
There was no mention of the hundreds of millions of dollars Crown must pay to resolve allegations of misconduct in several Australian states. Blackstone bought the company two years ago as Crown responded to the allegations and needed to find a way to recoup its $6.6 billion investment.
The casino’s Crystal Level remains open, offering players 160 gaming tables and more than 66 electronic slot machines.
But while gamblers can still find a place at Sydney's Crown casino, some staff can't. As many as 95 workers have lost their jobs due to the closure. Blackstone said some Crown Sydney staff may find a place on the payroll of Crown Melbourne or Crown Perth.
Includes layoff differences
Entain is "growing rapidly in Australia", according to a company statement. Despite the improvements and huge success of the Tab NZ Acquisition in New Zealand, the company is still cutting jobs.
The changing environment will result in "a small number of redundancies" in Australia. Just how much depends on the person providing the information.
More than 50 jobs have been axed, The Australian Financial Review reports. Other sources told the outlet the number was closer to 80. However, another source assumes a higher number.
Last month, WPT global senior marketing manager Andrea King said in a LinkedIn post that number could be as high as 80%. King served as Entain's marketing manager until February of this year.
Entain has been busy making a number of acquisitions in various markets in recent years, most recently completing the acquisition of Poland's STS Holdings. The company reportedly used much of the proceeds from the deal to advance its M&A efforts, and the employees who helped get the company to where it is today are paying the price.
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Source: www.casino.org
