Major gambling operator Paddy Power Betfair will likely reduce its workforce by 650 people, media sources reported. The recently merged betting and gaming company plans to cut about 300 jobs from its Ireland-based operations and 350 more jobs from its British operations. Currently, the group’s overall workforce totals 7,200 people.
According to media reports, jobs from the legal, HR, finance, and trading and risk areas are among those at risk. In general, cuts will be implemented to posts that were overlapped once Paddy Power and Betfair completed their merger in February of this year.
Here it is important to note that Paddy Power’s 600 sports betting shops across Ireland and Great Britain will not be in any way affected by the move. Prior to the merger, Betfair had no land-based operations.
Last summer, the two gambling companies announced that they were planning to combine their businesses, thus creating one of the biggest online and land-based sports betting and gaming companies. The £6-billion merger is expected to result in full-year revenue of £1.1 billion and cost savings of more than £50 million.
As mentioned above, the merger was completed in February 2016. The enlarged group now runs betting shops across Ireland and Great Britain and provides online and mobile gambling operations in Ireland, Great Britain, Italy, Australia, and the United States.
Apart from the workforce reduction, the enlarged business is also planning to bring all staff members under the same roof. Workers from Betfair’s office in Dublin will be moved to Paddy Power’s headquarters in Clonskeagh, Dublin. Paddy Power Betfair’s UK office will be located in Hammersmith, London. The company is expected to complete the moves by August, when it is set to publish its first interim results.
Breon Corcoran, who assumed the position of CEO of the enlarged group, said that the new financial year had started quite well for the gambling operator.
The news about the workforce reduction came shortly after former Paddy Power CEO Andy McCue announced that he would leave his current post of Chief Operating Officer at the newly merged group to pursue new business opportunities, although many believed that he would succeed Mr. Corcoran as CEO. Mr. McCue’s resignation will become effective as of August 30.
