Entain to cut 500 roles globally but stresses it’s not a reaction to UK tax hike

Entain, parent company of Ladbrokes and Coral, has confirmed plans to reduce its workforce by approximately 500 roles globally, in an efficiency drive led by new CFO Michael Snape.

The cuts, first reported by Reuters yesterday, are primarily focused on the company’s central corporate functions, including finance and human resources, as well as product and technology.

The group clarified that the current round of job cuts is not specifically a reaction to the recent increases in UK Remote Gambling Duty, but rather as part of a longer-term cost optimisation effort.

‘Enhance Entain’s efficiency and agility’

In a statement to iGB an Entain spokesperson said of the measure: “As part of our ongoing focus on enhancing Entain’s operational efficiency and agility, we have begun implementing organisational changes which will regrettably impact a number of roles across the Group over the months ahead.” 

“These changes will help make Entain a stronger, better business and are a further demonstration of our strategic focus on maximising shareholder value. We are consulting with all those affected to support them during this process.”

Sector pressures

Entain’s announcement emerges against a backdrop of intensifying regulatory and fiscal pressures across the UK and other European markets. These include increased compliance costs, proposals for stricter online advertising rules, and higher betting duties. 

In April of this year, Entain also announced the closure of 39 Ladbrokes stores in Ireland amid reports it withdrew from discussions to sell its entire Ladbrokes retail estate in the market. 

A Ladbrokes spokesperson told iGB at the time: “We continually review our retail estate to ensure our business remains competitive and financially sustainable”.

“Our priority now is to engage constructively with colleagues throughout the consultation process, with a strong focus on redeployment wherever possible. Ladbrokes remains committed to Ireland and to operating responsibly within a sustainable retail footprint.”

It will also divest fron its CEE business, after agreeing to sell a 20% interest in Entain CEE to EMMA Capital, its joint venture partner.