Star Entertainment to cut 500 jobs in response to weak revenue

by Stuart Condie

SYDNEY – Star Entertainment Group Ltd. plans to cut 500 full-time jobs as the Australian casino operator slashes costs in response to what it calls unprecedentedly weak earnings.
Star said on Wednesday it would also eliminate employee incentives and freeze wages for all employees not included in the broader negotiated agreement. It expects to cut operating costs by more than A$100 million ($67.3 million) in the 2023 fiscal year, including a previously announced A$40 million move.
The ASX-listed company blamed weak consumer spending and the impact of restrictions in Sydney after regulators found lax regulations meant it was unfit to operate its casinos.
“The group’s current earnings performance is at an unprecedentedly low level,” Star said, excluding periods when its venues were closed due to Covid-19 restrictions.
Barring a change in operating conditions, it now expects full-year underlying earnings before interest, tax, depreciation and amortization to be in the range of A$280 million to A$310 million.
In February, Star posted a net loss of A$1.26 billion for the first half of the 2023 financial year, including a large impairment charge related to its Sydney casino.
 
Write to Stuart Condie at stuart.condie@wsj.com