SYDNEY, June 12 (Xinhua) -- Star Entertainment Group, which operates Sydney's popular Star Sydney casino, revealed that they will slash 400 jobs from their register following a slump in VIP spending.
On Tuesday the company announced a downgrade of 3.2 percent to their earnings forecast for 2019, from 394.9 million U.S. dollars to 382.5 million U.S. dollars.
The company's Chief Executive Matt Bekier said that the job losses were part of a planned restructuring which has been moved forward due to the revised revenue estimates.
"The plan initially was to implement these additional changes in the 2020 financial year in a more gradual, less disruptive way -- trading results have brought that timeline forward," Bekier said.
The change came as competitor enterprise, Crown Resorts nears completion of its new VIP focussed casino and entertainment venue, slated to open in 2021 across the harbor from the Star.
Bekier blamed the reduction in revenue not on declining visitation rates, but on the amount being spent by typical high-rollers.
"Rather than the best champagne it's something a little less expensive -- or rather than spending a night at the theatre with a meal at one of our restaurants, it's the show only," Bekier said.