General managers at The Star Entertainment Group learn they no longer have jobs as shares sold off

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

The Star Gold Coast. Photograph: Jason O'Brien

THE Star Entertainment Group has started telling up to 20 per cent of its salaried staff they no longer have jobs as two 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 today.

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 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.

Staff walk past a mural painted with colleagues’ faces at The Star Gold Coast. Photograph: Jason O'Brien

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The job cuts, framed by The Star as a “creation of centres of excellence in gaming and marketing”, will be completed by the end of September, saving $40-$50 million a year.

Despite posting record earnings for the first half of the year, The Star said turnover from its international VIPs was down 31.1 per cent in the second half of the year so far, with “challenging macro-economic conditions” in its domestic markets; lower hold rates on gaming tables; and disruption from its renovations in Sydney also hurting its results.

CEO Matt Bekier said on Tuesday many of the group’s salaried staff were based in its Sydney headquarters and that most of its 9000-strong workforce would not be affected.

The Star said the program would no affect its multi-billion expansion of The Star Gold Coast or construction of its Queen’s Wharf project in Brisbane.