The Star Entertainment Group is the latest listed firm to stand down the bulk of its workforce with 8,100 workers suspended following the closure of its food, beverage, conferencing, and gaming facilities.
The company on Wednesday said its casino operations in Sydney, Gold Coast and Brisbane have been severely curtailed following government imposed bans on gatherings and non-essential services, necessitating a temporary standdown of 90 per cent of its staff.
“The Star has taken a very difficult, but necessary, decision in relation to its workforce … these stand downs include senior management,” the company said in a release.
The Star has provided two weeks of paid pandemic leave and employees will be able to access any accrued annual and long service leave entitlements.
Hotel accommodation services remain open in a reduced capacity at this time.
Further details will be revealed in the coming days regarding cuts to fees and salaries of Star board members and senior management.
Shares in the company have lost 65 per cent of their value this year amid a wider market downturn.
At 1130 AEDT shares in The Star were down 0.62 per cent despite a lift in the local bourse, with the company having hit an all-time low of $1.60 in early trade.
The Star‘s announcement comes after troubled airline Virgin Australia stood down about 8,000 of its 10,000 workers until at least the end of May and further slashed domestic flight capacity in the wake of the coronavirus border restrictions.
Mosaic brands – the owner of Noni B, Rivers and Katies – also said it will be standing down 6,800 team members across 1,300 or so stores from Thursday.
Qantas has already suspended 20,000 of its 30,000 workforce, travel firm Helloworld has announced it will be sacking 275 people across its global network and standing down another 1,300 workers.
Hospitality groups including Justin Hemmes’ Merrivale empire and The Federal Group have also suspended thousands of employees.
Westpac forecasts there will be over 814,000 job losses leading to an 11 per cent unemployment rate by June.