BUSINESS

Ladbrokes-Coral shedding up to 700 jobs ahead of merger

TAGs: Australia, four nations rugby, gala coral group, Ladbrokes, sponsorship

ladbrokes-coral-redundanciesUK-listed gambling operators Ladbrokes and Gala Coral Group plan to cut up to 50% of their workforce in preparation for the two companies’ proposed merger.

In an email to Gala Coral staff obtained by eGaming Review, CEO Carl Leaver warned that the fusion of the two companies will result in “around 600, maybe up to 700, fewer positions’ at the new Ladbrokes-Coral entity. The total represents around half of the two firms’ existing payrolls.

Affected staffers will be offered redundancy pay of between eight and 40 weeks their usual salary. Weaver said the process of identifying who gets the axe and who gets to stay will be based “purely on merit.” The payroll purge is expected to get underway in November.

The merged company plans to operate out of Gala Coral’s Stratford office, which will result in the closure of Ladbrokes’ Rayners Lane HQ. A smaller corporate office will be established on Victoria Street.

The UK’s Competition and Markets Authority gave the merger its final blessing this summer, provided the operators sell off up to 400 of their retail betting shops. Rival bookies Betfred and Boylesports are believed to be the frontrunners looking to expand their retail presence by snatching up Lads-Coral’s castoffs.

In other Ladbrokes news, the company has signed on as title sponsor of the 2016 Four Nations Rugby tournament. Lads already has high visibility in the sport via its title sponsorship of the Challenge Cup and premium partnership with the Super League, Ladbrokes branding will be all over the seven-match international tourney that kicks off on Oct. 28.

One of those aforementioned four nations is Australia, where Ladbrokes’ local operation recently announced a new CEO. Dean Shannon, who has helmed Ladbrokes Australia since the UK parent acquired and rebranded his Bookmaker.com.au operation in 2013, will leave the firm in February 2017 for “personal reasons.” Shannon’s vacancy will be filled by current Ladbrokes Australia COO Paul Cherry, another Bookmaker.com.au veteran.

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