Ladbrokes Coral to Make Job Cuts after GVC Takeover
1,600 employees stand to face redundancy under proposed deal
GVC Holdings’ ongoing takeover of the UK’s largest high street bookmaker could eventually result in up to 1,600 employees being made redundant, as per official merger documents. A scheme document issued to investors by the two organisations notes that the total headcount reduction “will be less than 6%” of the combined group’s employee base of 26,800.
Most of these cuts would occur in the UK, and they are not expected to affect the currently employed staff until next year. It is unlikely that the Ladbrokes network of high street bookmakers will be affected, but the Ladbrokes Coral head office is expected to close – some of the staff therein would relocate to the GVC head office when this occurs
According to industry reports, GVC’s offer is worth up to £3.9 billion, but could fall by £800 million. The UK government might yet opt to slash the maximum permitted fixed-odd betting terminals stake to £2. Since the machines bring in more than half of bookmakers’ revenues, a big chunk of Ladbrokes’ income could disappear.
More takeovers could be in the pipeline, as William Hill, online casino 888 and Mecca Bingo firm Rank are all potential merger or acquisition candidates.
Ladbrokes also revealed information about of its recent trading, showing that revenues rose 12% in the final quarter of the year on the back of a series of unexpected football outcomes.