Crown Sydney No Longer Open 24-7 – To Cut 180 Jobs

Crown Resorts has been working to improve profitability, resulting in numerous cuts. Back in August, the casino closed two of its VIP rooms. Now, the casino has announced it will no longer operate 24/7.

Starting on 29 November, Crown Sydney will close for at least six hours a day, from Monday through Saturday and 12 hours on Sunday. As a result of the reduction in hours, the casino will be cutting 180 jobs.

Crown Resorts Announced Reduction in Hours at Crown Sydney

This past Monday, Crown Resorts informed employees at Crown Sydney that the casino will no longer operate 24/7. Instead, the casino will operate 18 hours daily, Monday through Saturday, and 12 hours on Sunday.

According to the announcement, the Barangaroo location does not have enough visitors to justify opening 24/7. Now, the casino will operate from 10 am to 2 am Monday through Thursday and 10 am to 4 am on Fridays. On Saturdays, the casino will open from 2 pm to 4 am, and Sunday hours will run from 2 pm to 2 am.

Naturally, the reduction in hours will also result in reduced staff. Per the announcement, 180 jobs will be lost due to the revised hours of operation. This decision comes after the casino closed its two VIP floors in August. It also cut around 95 jobs due to “macroeconomic challenges.”

Most Job Losses Are in Frontline Operations

According to a Crown Resorts spokesperson, many impacted jobs are from frontline casino operations. Others will be cut from casino support and hospitality. According to Crown Sydney CEO Mark McWhinnie, the company will attempt to transfer “as many people as possible” to its Perth and Melbourne casinos.

McWhinnie states, “Our priority is to support the 180 impacted team members alongside their union as they determine their next steps.” He continues, “Difficult decisions are required in the current environment to ensure we always provide a world-class experience for our guests as we look forward to resuming 24-hour casino operations across two floors when business demand returns.”

The Barangaroo location has only been open a year, and in that time, approximately 275 jobs have been lost. Crown’s recent decision highlights the challenges faced by the casino and the Australian gambling industry as a whole, which is regulated by a number of organisations. Crown and Star Entertainment continue to deal with fallout resulting from its past misdeeds involving fraud, money laundering, and other offences.

Worst Possible Time of Year for Layoffs

While there is never a “good” time for layoffs, they are especially tough during the Christmas holiday season. The resulting job losses will hit less than one month before Christmas, meaning that families will be struggling to meet core expenses during a season that is already financially stressful.

Promising to transfer employees to other casinos may not be a feasible solution as it would require potential relocation or excessive commuting for employees. A number of these employees will likely have to start the new year in job lines.

Why Does Business Continue to Slide?

There are a couple of obvious reasons behind the continued downturn in business. The most obvious is the fallout over various scandals. Casinos are now limited on the types of high rollers they allow to play at the casino, and some are refusing to come to the casino due to the scandals.

Next, we cannot overlook the impact of online gambling on the market. Studies show that players prefer spending large sums at Australian online casinos over returning to live casinos, due to strict regulations and safety concerns. Most people have discovered the convenience of gambling online, which includes offshore gambling as restrictions continue to increase in Australia.

Over time, Crown and Star Entertainment will likely be able to rebound. However, it will be a prolonged and painful process that could see more jobs lost before business rebounds.