G8 Education, the childcare provider at the centre of a major child abuse scandal, has announced the suspension of dozens of centres. The ASX-listed company has suspended 40 childcare services across Australia, stating that the move is part of a long-term plan to stabilise its network and protect service quality amid a rapidly shifting early childhood sector.
The company said the decision reflects the pressure facing providers nationwide, with falling birthrates, changing family demand and tougher operating conditions reshaping the market.
G8 operates nearly 400 centres across five states. Chief executive Pejman Okhovat said the organisation had a responsibility to adapt early and ensure children’s safety and wellbeing remained the priority.
“At G8 Education, we continuously review how we operate to ensure we can continue delivering safe, high-quality early education and care for children and families, both now and into the future,” he said in a company statement on Wednesday. “We have a responsibility to operate sustainably and responsibly, in a way that delivers the best possible outcomes for families and supports children to grow, thrive and learn in safe and supportive environments.”
The company said it is working closely with state, territory and federal regulators as the suspension process rolls out. Families will be supported to move to nearby G8 centres, and staff will be redeployed where possible. Longer-term decisions — including lease surrenders, divestments or other options — will follow.
Market fallout and safety concerns
The announcement comes as G8 continues to navigate a steep decline in market confidence. The company’s share price has plunged from more than $1.20 to 20 cents over the past year, wiping out hundreds of millions in value. Its shares fell again on Wednesday morning, leaving the company with a market capitalisation of roughly $150 million.
Investor sentiment has been shaken in part by the criminal charges laid against former G8 employee Joshua Brown, who worked at the provider’s Point Cook centre in Melbourne. Brown was charged in July last year with more than 70 child sexual abuse offences, plus a dozen unrelated charges of bestiality. Further alleged victims brought that total to 156 in December.
The alleged victims were aged between five months and two years old, and the charges included sexual penetration of a child under 12, sexual assault of a child under 16, producing child abuse material and possessing child abuse material. The matter remains before the courts.
G8 has previously acknowledged that “serious incidents” across the sector have contributed to heightened regulatory scrutiny and a decline in family confidence.
Sector under strain
The early childhood education and care sector is undergoing what G8 describes as “unprecedented change”, driven by demographic shifts and macro-economic pressures. The company attributes lower birthrates and evolving family needs to reduced demand in some areas, while operating costs continue to rise.
G8 reported an 18.4 per cent fall in operating profit earlier this year, dropping from $72.4 million in 2024 to $59 million in 2025. Revenue slid 7.2 per cent to $948.2 million.
