Entain, the company behind Ladbrokes, Coral, and BetMGM, has announced preparations to cut 400 jobs. This decision comes only weeks after the FTSE 100 business reported better-than-expected profits for the first half of the year.
The gambling group has initiated a consultation process that could lead to the removal of one in five of its 2,000 customer care positions. Entain's chief executive, Stella David, stated that the proposed changes aim to ensure the business remains competitive and financially resilient in an increasingly challenging sector.
The company attributed the job cuts partly to higher taxes in the UK. The sector is also anticipating a potential increase to machine games duty in the upcoming budget, reportedly being considered by Chancellor John Healey for 28 October.
Entain's underlying operating profit for the six months to the end of June was £479m, which was 2% lower than the same period last year but exceeded investor expectations. The company's shares are down approximately 36% year-to-date and are set to be demoted to the FTSE 250 index from 21 September.