Tabcorp reportedly slashes jobs by 10% in cost-saving drive

Neha Soni December 6, 2024

SiGMA news

Australia’s largest betting agency, Tabcorp Holdings, has slashed 20 percent of the workforce to cut costs and simplify its business, the Australian Financial Review has reported.

This comes down to around 200 roles, and cuts have happened across all divisions, including the media arm. However, the company’s horse-racing broadcasting channel Sky Racing was unaffected by layoffs.

The company has slashed 200 roles since the company’s annual meeting in October. Tabcorp chief executive Gillon McLachlan flagged in October that he would reduce operating costs this financial year.

“Tabcorp is creating a fitter organisation and a new cadence to move more quickly in a changing market,” a company spokesman said. “Tabcorp acknowledges the significant contribution and service of staff.”

Cost-savings programmes

Tabcorp’s biggest consultants are EY and Boston Consulting Group. Boston Consulting Group was hired by Tabcorp to help execute its previous cost-savings programmes known as Genesis, under which the company was trying to save up to $100 million in operating costs annually.

The company is trying to find more efficiencies by reviewing how it spends its money. McLachlan slashed over $500 million from the company’s wagering assets and said this year’s operating costs would be higher than the target of $660 million.

McLachlan has emphasised the need for a leaner business model and that it is his job to simplify the business to make it more cost-effective and unlock the opportunities within the company’s asset base.

With a key focus on adding expertise and experience in wagering, he emphasised the importance of strengthening the company’s senior leadership. “Wagering is the foundation of our company,” he said.

Tabcorp’s troubles continue

Previously, Tabcorp has cut 130 jobs as part of an earlier cost-saving initiative. The recent layoffs come as Tabcorp faces increasing pressure to modernise its operations and stay competitive against online betting rivals like Sportsbet.

Last month, Tabcorp’s troubles continued with another fine of A$262,920 ($171,647) for accepting in-play sports bets online, which is a breach of the country’s Interactive Gambling Act 2001.

Earlier, Tabcorp was hit with a record $4.6 million fine after a Victorian Gambling and Casino Control Commission (VGCCC) investigation found significant breaches of responsible gambling regulations. These violations occurred between August 2020 and February 2023, highlighting serious shortcomings in Tabcorp’s adherence to its betting licence and responsible gambling code.