Bet365 is set to axe 340 jobs across its head office and European hubs, with the privately owned online operator blaming “a highly competitive trading environment, plus increased regulatory and tax-related costs”.
As first reported by The Sun, bet365 will lay off 300 staff at its Stoke-on-Trent headquarters, while a few dozen jobs will go at its Malta and Gibraltar hubs.
The redundancies equate to around 3% of bet365’s global workforce. As per the most recent Companies House filings, the firm had an average of 9,462 employees on its books.
The Staffordshire headquarters is staffed by around 5,500 people, making the family-owned operator the largest private employer in the local area.
The job cuts are expected to impact trading and operations teams.
The reduction in headcount comes against the backdrop of UK remote gaming duty jumping from 21% to 40% on 1 April. Remote general betting duty, apart from domestic horseracing, will increase from 15% to 25% from next April.
A report in The Times this week noted new Chancellor John Healey could be eyeing an increase to machine games duty (MGD) on Category B machines found in betting shops, casinos, bingo halls and Adult Gaming Centres as part of the Autumn Budget on 28 October.
Think tank the Social Market Foundation and former Prime Minister Gordon Brown have suggested doubling MGD from 20% to 40%, a move critics say will be catastrophic for the land-based gambling sector in the UK.
The bet365 redundancies come as operators continue to cut costs. Flutter announced last week as many as 100 Paddy Power shops could close as part of mitigation measures.
Evoke, the William Hill parent, and Betfred have both confirmed shop closures, citing the rise in remote duties as a core reason. Bet365 does not have a retail footprint.
Entain has announced plans to cut 500 jobs globally, equivalent to 2% of its workforce, though the Ladbrokes and Coral owner did not put the blame solely on the increased tax burden.
A bet365 spokesperson said: “As an international business, we continually review and assess our operations to ensure the business’ long-term future.
“We are currently facing a highly competitive trading environment, plus increased regulatory and tax-related costs.
“As a result, we are restructuring some of our locations this year. Ultimately, this will result in a reduction of approximately 340 roles across our European hubs, which is the equivalent of around 3% of the workforce.
“We are committed to minimising the impact on our people and are exploring all avenues to reduce the number of redundancies.
“As a first step, we are planning a programme of voluntary redundancies.
“Our colleagues are our priority. We understand the concerns many will have. Impacted staff have been informed and are being fully supported throughout this process.”
The post Bet365 to cut 340 jobs across European hubs as UK tax raid blamed for decision first appeared on EGR Intel.
Online giant to remove 300 positions in Stoke-on-Trent and several roles in Gibraltar and Malta as it becomes latest operator to reduce costs in face of duty hikes
The post Bet365 to cut 340 jobs across European hubs as UK tax raid blamed for decision first appeared on EGR Intel.