Australia’s Star Entertainment Group has announced it will cut 500 full-time jobs, cancel executive bonuses and freeze the salaries of non-EBA (enterprise bargaining agreement) employees due to a significant deterioration of operating conditions at its Sydney and Gold Coast casinos.
The actions, which will be complemented by a strategic review of possible structural alternatives to further increase value for shareholders, were revealed in a Wednesday ASX filing, with Star claiming it will save the group AU$100 million (US$67 million) in annual operational expenditure.
It also comes amid fears the NSW state government is about to impose a significant tax hike on Star’s gaming revenues, potentially raising the current 32% tax on electronic gaming machines to more than 60%.
