Tabcorp Holdings, a leading Australian gambling company, has announced plans to reduce its workforce by up to 10%, eliminating around 200 positions. This move is part of the company's strategy to cut costs and enhance operational efficiency, as initially reported by The Australian Financial Review.
Tabcorp sets out to simplify its business under new leadership
The majority of the company's divisions will be affected by the cuts, though Sky Racing, the horse-racing broadcasting channel, will remain unaffected. This development had been somewhat expected since the appointment of the new CEO, Gillon McLachlan. During the earnings call in October, McLachlan emphasized the need to streamline the company's structure to enhance performance. Although McLachlan advocated for a more straightforward corporate structure, he never directly mentioned layoffs, yet many anticipated them. Previously, Tabcorp had also implemented job cuts to maintain its operational model, reducing 130 positions in an earlier round. The company has been under increasing pressure, having been fined multiple times, including a A$262,920 penalty by the Australian Communications and Media Authority in November, and another A$4.6 million fine by the Victorian Gambling and Casino Control Commission.
Layoffs become the norm across the gambling industry
These fines may have prompted Tabcorp to immediately initiate cost-cutting measures. Recently, rounds of layoffs have become common in the gambling industry. Similarly, Catena, an affiliate and media company, had to eliminate approximately 30 positions. Better Collective, the parent company of The Action Network, also announced 300 layoffs.
