Star staff learning their fate in jobs cull

THE Star Entertainment Group has started telling up to 20 per cent of its salaried staff they no longer have jobs as major shareholders offloaded more than 25 million shares in the company.

A spokesman said “the process had commenced” for the group’s cost cutting, and general managers whose roles had been terminated had been informed.

He said fewer than 10 per cent of the people who had been let go were from the Gold Coast casino.

“As we implement a consolidation program to prepare for an imminent mega-expansion of our properties and frontline workforce, we want to show sensitivity and respect for the salaried staff who are leaving us,” the spokesman said.

Star’s other properties include the Treasury in Brisbane and The Star Sydney.

The group announced on Tuesday it would cut up to 20 per cent of its 2000 salaried staff as softening domestic and international conditions impacted its bottom line.

Shares in the group plunged almost 17 per cent from $4.51 to $3.745 by 12.30pm, wiping more than $700 million dollars from its market capitalisation.

It regained some lost ground and closed at $3.82 at 3pm yesterday.

Among those selling was major shareholder the Commonwealth Bank, which decreased its holding from 65.8 million shares to 51.5 million in a sell-off worth $54.8 million that took its holding from 7.18 per cent to 5.61 per cent.

Perpetual Limited announced, after the market closed, it too had decreased its stake in The Star this week, shedding 11.1 million shares worth $42.5 million to take its interest from 9.57 per cent to 8.35 per cent.

The Star said the program would not affect its multi-billion expansion of The Star Gold Coast.