SkyCity Proposes Cutting About 200 Roles as Cost-of-Living Squeeze Hits Casino Operator

^{SkyCity said it was reviewing its operating model amid sustained pressure on customer spending, with most proposed cuts at its Auckland precinct. (Photo: Pavel Spindler / Wikimedia Commons)}

SkyCity Entertainment Group is proposing a restructure that could affect around 200 roles, mainly at its Auckland precinct, as the casino operator responds to weaker consumer spending on both sides of the Tasman.

In a statement, the company said consultation with staff began on Tuesday and would run over the next two weeks. SkyCity employed roughly 2,860 people in Auckland according to its most recent annual report, and said it was reviewing its operating model amid "sustained pressure on customers' discretionary spending".

Chief Executive Jason Walbridge said the economic conditions facing the business required difficult decisions about how the group was structured for the future, while stressing that no final decisions had yet been made.

The economic conditions facing our business are real, and they require us to make some hard choices about how we're set up for the future. We're reshaping how our people are deployed across the group, so we're simpler, smarter and more connected.

Restructure Centred on Auckland

SkyCity operates casinos and pokies in Auckland, Hamilton and Queenstown, along with a venue in Adelaide, and its flagship Auckland complex is anchored by the Sky Tower. The company said any changes would be subject to "genuine consultation" with affected staff and their representatives before being finalised.

The proposal lands ahead of the operator's full-year results, due next week, after a difficult period for the business. SkyCity flagged falling revenue at its half-year results in February as it absorbed regulatory costs and operational changes, though its profit for that period doubled to just over NZ$12m.

Union Responds

Unite Union, which represents staff at SkyCity, said most of the proposed job cuts were in corporate functions, although some frontline staff were also affected. The union official for Auckland, Tali Williams, said the news was a bitter pill for workers to swallow.

SkyCity has faced heightened regulatory scrutiny in recent years across its New Zealand and Australian operations, adding to cost pressures at a time when household budgets are stretched. The company pointed to the fuel crisis and broader cost-of-living challenges as factors weighing on customer spending.

SkyCity also operates a casino in Adelaide, Australia, and has been working through regulatory and remediation costs across its portfolio in recent years. The company framed the restructuring as a bid to make the group "simpler, smarter and more connected" rather than a response to any single event.

What Happens Next

The consultation covers proposed changes to how staff are deployed across the business, with SkyCity saying it would support affected workers through the process. Any confirmed reductions would follow the two-week consultation window that began this week, and the company said its focus remained on building a stronger business through the change.

Walbridge said the operator's focus remained on supporting staff through any change. The restructuring proposal comes as New Zealand advances a new online casino licensing regime that is set to reshape the wider gambling market. SkyCity declined to be interviewed ahead of its results.