Entain, the parent company of Ladbrokes and Neds, has taken a decisive step to streamline operations by cutting over 50 jobs in Australia, a move seen as a response to the current climate of reduced discretionary spending. Sources within Entain, who preferred to remain anonymous, revealed that this cost-cutting initiative extends across all facets of the business, which maintains a significant presence in the UK, Europe and South America.

Impact on various divisions

While initial reports hinted at over 80 job losses, some insiders suggest the actual figure is closer to 60. These cuts have impacted various divisions, including customer service, digital, technology, and marketing.

An Entain spokesperson commented on the situation, stating, “Entain has enjoyed a rapid period of growth in Australia, and like any major technology-led company, we continue to review business operations and tweak our structures to set us up for the next stage of growth. Unfortunately, this has led to a small number of redundancies across a range of business units.”

Ladbrokes, which entered the Australian market in 2013, has undergone remarkable expansion over the past two years, coinciding with a surge in consumer spending. Just two years ago, the company employed around 400 individuals in Australia, a number that has since doubled.

Launch of online tv channels

In an effort to engage punters, Ladbrokes launched a suite of online television channels last year, which included hiring commentators and writers for pre-race programs, social media engagement, and online content creation.

However, despite its successes, Entain has encountered several challenges in the past year. In September, the Australian anti-money laundering watchdog initiated an investigation into the multinational gambling giant for potential non-compliance with anti-money laundering and counter-terrorism financing laws. The investigation could result in a maximum fines and may extend up to two years.

Additionally, the company is challenged to reduce discretionary spending and rising inflationary pressures. In Australia, Entain, along with its competitors, faces the looming possibility of stricter regulations on gambling advertising and potential financial consequences stemming from the government’s newly launched national self-exclusion register, BetStop. This initiative, introduced this week, enables gamblers to self-exclude from all gambling sites for three months or indefinitely.

In a recent statement, CEO Jette Nygaard-Andersen (pictured above), said that the first half of 2023 had a strong start with continuing underlying momentum across operations around the world. “We are delivering both financially and strategically, with a record number of active customers enjoying our products, and we are executing on growth opportunities to further diversify and expand across regulated markets,” she said.

UK fine is still pending

On a global scale, Entain faces the possibility of a “substantial” financial penalty from UK authorities related to alleged bribery offences by one of its former Turkish subsidiaries. Just last week, the wagering company allocated ￡585 million to cover potential fines tied to the ongoing investigation. It stated that negotiations with the Crown Prosecution Service (CPS) are ongoing, following a four-year probe into these allegations.

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