Crown Resorts Announces Over 100 Jobs To Move Offshore

Crown Resorts, the Australian casino operator, is embarking on a significant restructuring initiative that involves relocating over 100 corporate roles to an offshore location. Themove is part of a broader cost-reduction strategy aimed at enhancing operational efficiency and ensuring long-term sustainability says the company. The decision, communicated to employees via email, primarily affects technology, accounting, and finance functions, which will be consolidated into a global capability center in Asia. However, frontline and guest-facing positions will remain unaffected, allowing Crown to maintain its commitment to customer service.

Crown Resorts has undergone substantial changes since its acquisition by Blackstone in 2022 for AU$8.9 billion. The acquisition marked an important moment for the company, which has been striving to recover from a series of regulatory challenges and operational setbacks. The restructuring is seen as a necessary step by the company to streamline operations and improve profitability.

Financial Performance

In the previous financial year, Crown reported a net profit of AU$142 million, a turnaround from prior losses. This recovery was helped by AU$220 million in cost savings and strategic divestments, including the sale of its London operations and a 20% stake in its Nobu restaurant chain. Additionally, the sale of a private golf course contributed nearly AU$100 million to the company’s finances.

The decision to relocate jobs offshore is primarily driven by the need to cut costs. By consolidating functions in a global capability center, Crown aims to leverage lower operational costs in Asia while maintaining a focus on efficiency.

Despite the job cuts, Crown has emphasized its commitment to enhancing the guest experience. A spokesperson for the company stated that the changes are designed to ensure that Crown remains “efficient and sustainable” while prioritizing customer satisfaction.

The timing of the job relocations coincides with rising tensions between Crown Resorts and the United Workers Union, which represents over 1,000 employees at the Melbourne precinct. The union has expressed concerns over the lack of a revised wage offer following the rejection of a previous proposal. In response, union members are planning to stage a protest, highlighting the ongoing challenges Crown faces in managing labour relations amidst its restructuring efforts.