G8 Education confronts defining year as occupancy falls and 40 centres face suspension

G8 Education has used its 2026 Annual General Meeting and a concurrent ASX trading update to outline one of the most significant reset periods in the company’s recent history, as falling occupancy, financial pressure and heightened scrutiny reshape the early childhood education and care (ECEC) landscape.

The ASX-listed provider announced plans to suspend the operation of approximately 40 centres in FY26, while also detailing cost-saving measures, support office restructuring and continued investment in child safety and quality outcomes.

The announcements, released on 29 April 2026, were accompanied by addresses from Chair Debra Singh and CEO and Managing Director Pejman Okhovat. 

Opening the AGM, Ms Singh described 2025 as “one of the most challenging and defining years in G8 Education’s history”, reflecting on the impact of serious child safety incidents in Victoria that sent shockwaves across the sector.

She said the events had tested confidence and trust in ECEC providers nationally and required deep reflection across the industry.

Mr Okhovat echoed those remarks, noting the incidents had affected family confidence across Australia and reinforced the need for stronger safeguards, vigilance and accountability. 

Both leaders reiterated that child safety remains the company’s highest priority.

During 2025, G8 implemented a range of measures including:

• enhanced recruitment and vetting processes
• centralised Working with Children Checks and teacher registrations
• mandatory child safety and safeguarding training
• bans on personal devices in centre rooms
• strengthened whistleblower protections
• continued cyber security investment
• expanded Safety Leader capability across services. 

The company also confirmed progress on its previously announced CCTV rollout, with pilots and staged implementation underway.

Alongside the AGM, G8 released a trading update showing continued occupancy weakness.

As at 24 April 2026:

• spot occupancy was 56.4 per cent, down 7 per cent on the prior comparable period
• year-to-date occupancy was 56.1 per cent, down 7.9 per cent on the prior comparable period. 

G8 attributed the decline to sustained affordability pressures, lower birth rates, increased long day care supply and reduced confidence following serious sector incidents.

The company said it does not expect a material recovery in occupancy relative to the prior corresponding period this year. 

40 centres to be suspended

In a separate public statement released on 29 April, G8 Education said the suspension of 40 services forms part of an ongoing review focused on long-term sustainability and maintaining high-quality outcomes for children and families.

The statement includes a full list of the 40 services identified for suspension.

While the announcement was framed as a portfolio optimisation measure, the effects are likely to extend well beyond G8 Education’s internal operations.

Beyond commercial and workforce impacts, centre suspensions can be particularly significant for children and families.

For many children, especially younger children, early learning environments are built around familiarity, routine and trusted relationships. Sudden transitions to new services may disrupt established friendships, attachment with educators and confidence in daily routines.

For children with additional needs, developmental vulnerabilities or those benefiting from consistent support strategies, continuity can be especially important.

Families may also face practical pressures including new travel arrangements, waitlists, changes to session availability and the challenge of helping children adjust emotionally to a new environment.

In this context, centre closures are not simply operational changes, they can be deeply personal transitions for children and the communities around them.

For employees, the closures may bring redeployment opportunities in some cases, but also disruption, changed commuting arrangements and potential job losses where suitable vacancies are not available.

Commercial impacts may also flow through to landlords and property owners, particularly where lease surrender or renegotiation becomes part of the next phase of the review.

Contractors and suppliers servicing affected centres, including maintenance, cleaning, food, training, technology and specialist service providers, may also feel the effects as operating footprints reduce.

Taken together, the announcement illustrates how network contraction decisions in ECEC often create ripple effects across local communities and broader business ecosystems.

The provider said immediate priorities include helping families transition to nearby services and redeploying team members where possible.

Longer-term options for those centres include lease surrender, divestment or alternative arrangements. 

The move represents a major contraction of the group’s operating footprint and signals a sharper focus on portfolio sustainability.

Cost reductions and restructure planned

G8 also announced further measures to reduce costs and strengthen resilience, including:

• procurement savings initiatives
• reorganisation of the support office structure
• reductions in the support office cost base. 

Mr Okhovat said the decisions were difficult but necessary to position the company for long-term sustainability.

Despite the challenging operating environment, G8 highlighted several positive indicators.

By the end of 2025:

• 95 per cent of centres were rated Meeting or Exceeding the National Quality Standard
• educator engagement remained above sector benchmarks
• retention improved
• 98 per cent of centres were operating their own Reconciliation Action Plan. 

The company also said more than 36,000 children attend its services each week, supported by more than 8,800 team members nationally. 

For FY25, G8 reported:

• statutory EBIT loss of $234.7 million
• net loss after tax of $303.3 million
• underlying EBIT (lease adjusted, excluding impairment) of $93.3 million
• positive operating cash flow of $103.8 million. 

The Board also opted not to seek approval for executive performance rights at this year’s AGM, citing accountability and alignment with shareholder outcomes.

A company in reset mode

The combined disclosures present a business undergoing significant recalibration.

Safety has moved even more firmly to the centre of governance and operations. The network is being reduced and reshaped. Costs are being tightened. Occupancy remains the central commercial challenge.

At the same time, G8 is seeking to reassure families, educators, regulators and investors that quality outcomes and long-term fundamentals remain intact.

Further detail on the progress of these initiatives is expected when the company reports half-year results in August.

While G8 Education’s update relates to one operator, the implications reach much further. Centre closures affect not only occupancy metrics and earnings, but families seeking stability, educators seeking certainty, landlords managing vacancies and suppliers reliant on service networks.

Read the full ASX announcements here.