Australian casino operator The Star Entertainment Group is laying off around 8,100 of its staff after the government ordered all non-essential businesses to close to reduce COVID-19 transmission.
On Wednesday, The Star informed investors of the human cost of the government’s decision earlier in the week to order all bars, restaurants, clubs and casinos to close their doors by noon on Monday. The government warned at the time that the shutdown could last “at least six months” to minimize the spread of the COVID-19 coronavirus pandemic.
The Star said the shutdown would have a “a material impact” on its operations, which include its flagship casino of the same name in Sydney and two other gaming venues in Brisbane and the Gold Coast. The company said management is focused on “implementing mitigation strategies to minimize impacts and conserve liquidity,” including “materially lowering operating costs and reducing capital expenditure.”
Accordingly, The Star said it has taken the “very difficult, but necessary decision” to temporarily stand down “over 90% of our approximately 9,000 employees.” The company said it had provided affected staff with two weeks of paid pandemic leave, and staff will have access to any accrued annual and long service leave entitlements.