Australia’s Star Entertainment Group has confirmed it will close its corporate office and hand more responsibility back to its three integrated resorts in Sydney, Brisbane and the Gold Coast as its new ownership team looks to cut costs.
Weeks after the head office closure was first mooted by Star’s recently appointed chairman Soo Kim – also the chairman of US casino operator Bally’s Corp – the Australian Financial Review revealed Monday that the company would push ahead with its cost-cutting plan, with staff informed of the decision via a recent internal memo.
“It is our intent to close the corporate office in its current form,” said Bruce Mathieson Jr, Star’s new Group CEO and director, in the memo. “Some tough decisions must be made. We must act. We must seize the moment in order to build a stronger and sustainable Star.
“The corporate office has added complexity rather than value and simplification. We must get closer to our customers and to your front-line team. And we have to meet the regulatory imperative to decentralise the business and empower our property teams.”
Mathieson Jr, whose company Investment Holdings Pty Ltd recently increased its stake in Star to around 23%, was named CEO following the sudden departure of Steve McCann in December. He was previously appointed as an Executive Director shortly after shareholders approved the Investment Holdings’ combined takeover deal with Bally’s through which the latter now holds a 38% stake in Star – taking their combined interest to 61%.
Fixing Star’s financial woes is the new ownership’s top priority, even after the company reported a narrowed EBITDA loss of AU$13 million (US$8.5 million) in the September 2025 quarter – down from AU$27 million (US$17.7 million) in June.
Kim and co have previously pointed to the impending departure of around 40 senior management staff although it is expected that the closure of the corporate office could result in hundreds departing. Others will be redeployed to property-level positions, the AFR reported.
Star has already farewelled a raft of senior people in recent months, including the entirety of its former Board of Directors, Property Presidents Janelle Campbell, Daniel Finch and Jess Mellor, plus CFO Frank Krile and COO Jeannie Mok.
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