Tabcorp announces job cuts affecting 10% of workforce

Australian wagering giant Tabcorp Holdings has confirmed that it will be cutting as much as 10% of its workforce, affecting 200 positions which will be slashed as the company embarks on a cost-reduction effort that is meant to streamline its business operations, The Australian Financial Review originally reported.

Tabcorp sets out to simplify its business under new leadership

The cuts will impact most of the company’s divisions, but will not impact Sky Racing, the company’s horse-racing broadcasting channel.

The move was somewhat anticipated when the new company CEO, Gillon McLachlan took over, stating during October’s earnings call that the business needed to optimize its structure to achieve better results.

McLachlan argued for a simpler corporate structure and although he never openly suggested layoffs at the time, many suspected this was coming.

This is not the first time Tabcorp has resorted to job cuts to safeguard its operational model. An earlier round of layoffs saw 130 jobs pared down.

The company has also been under mounting pressure, hit with multiple fines, an A$262,920 fine issued by the Australian Communications and Media Authority in November, and another one issued by the Victorian Gambling and Casino Control Commission which fined the wagering company for A$4.6m.

Layoffs become the norm across the gambling industry

These fines may have contributed to Tabcorp’s immediate decision to start cost-cutting right away as well. Rounds of layoffs have not been uncommon in the gambling industry of late.

Catena, an affiliate and media company, similarly had to drop 30-odd jobs, and so did Better Collective, the parent company of The Action Network, which announced 300 redundancies.

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