Paddy Power Betfair job cut plans set to save £50m

Paddy Power Betfair job cut plans set to save £50m

Tuesday, April 5, 2016 Totally Gaming
Merged entity to trim 10 per cent of workforce

Paddy Power Betfair has revealed plans to save up to £50m (€62.6m/$71.2m) by cutting almost 10 per cent of its workforce in the UK and Ireland.

In emails to staff, which have been picked up by the Irish Times newspaper, the operator said that up to 650 jobs from its overall workforce of 7,200 could go, as it looks to make savings following the completion of its merger earlier this year.

The existing Paddy Power and Betfair operations merged in February to create a new combined entity worth more than £1.1 billion.

As part of its strategy moving forward, the newly created company now plans to trim 300 jobs from its operations across Ireland, as well as an additional 350 in the UK. However, the operator noted that the cuts would not impact workers at land-based sites, as Betfair did not previously have any form of brick-and-mortar presence, as it purely operated online and via mobile.

Instead, the staff members most likely to be hit are those in positions that were duplicated as a result of the merger. These include professional posts such as legal, finance and human resources, technology, and trading and risk. 

News of the reshuffle comes after Andy McCue, formerly chief executive of Paddy Power prior to the merger, announced that he was to leave his new role as chief operating officer at the combined company.

TotallyGaming.com says:

Job cuts such as these are almost an inevitable, and unfortunate, part of merger agreements. By bringing together two major brands like Paddy Power and Betfair, there will be double-ups on a whole host of positions. Take McCue, for example, who took a lower-ranked job despite having headed up Paddy Power during a very successful period for the company. However, retaining the key talent that has made these two of the most successful brands in the space will be crucial during these changing times.

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