The Zhitong Finance App learned that Crown Resorts Group, a subsidiary of Blackstone Group (BX.US), said on Monday that it will cut as many as 1,000 jobs in Melbourne, Perth and Sydney due to the continued weak economic environment affecting its business and the company is trying to meet regulatory requirements.
The layoffs will affect the company's casinos in Melbourne and Perth and some corporate positions at Sydney Crown.
Ciaran Carruthers, CEO of Crown Resorts, said, “The challenges facing Crown reflect a sharp decline in foreign visitors, a sharp decline in local workers in the city center, and restrictions on gambling in Sydney and Melbourne.”
According to Crown Group's website, there are currently more than 20,000 people working in more than 700 different jobs at its resorts.
Last year, Crown Resorts agreed to pay a fine of 450 million Australian dollars (about 296 million US dollars) for violating anti-money laundering laws, after allegations of its governance triggered investigations in the states where it operates. The company has also been investigated by the Financial Crimes Supervisory Authority.
Crown Resorts was recently granted permission to maintain its license to operate the flagship Melbourne casino and retained its Sydney casino license after nearly three years of intensive overhaul.
Carruthers added: “We are committed to meeting our regulatory obligations and ongoing transformation, including Crown PlaySafe, the transformation plans in Melbourne and Sydney, and the ongoing overhaul in Perth.”