Exclusive: Flutter to make redundancies in UK & Ireland division due to “challenging external environment”
Flutter Entertainment will make redundancies across its UK & Ireland operating division following an internal review of operations.
The operator said the UK’s operating landscape has changed to such a degree in 2022 that it has been forced to respond to a “more challenging external environment”.This, combined with internal structural challenges, means that some job roles will be directly impacted over the coming weeks and months.
In an internal email seen by iGaming NEXT, Flutter UK & Ireland CEO Conor Grant said: “The proposals do mean that there are some people whose roles are directly impacted. It doesn’t mean that they will automatically be leaving the business. We expect that many will either be offered, or be successful in securing, other roles in the proposed structures.
“However, should our proposals be accepted, some people will unfortunately leave the business. This does not diminish the contribution that they have made in their time with us, or our appreciation for all their hard work.
“It is important for you all to know that people who are directly impacted are in this group as a result of the proposed future design. It is not a reflection on their performance,” he added.
Flutter’s UK & Ireland employees are set to discover their fate in a meeting today (28 July) at 11am.
Grant handed in his resignation last week, announcing his intention to spend more time with his family outside of work.
He will be replaced by Ian Brown, chief executive of B2B internet hosting firm UKFast, who will now take charge of a streamlined organisation, which includes Paddy Power and Sky Bet from the Flutter brand portfolio.iGaming NEXT understands the internal review has seen Flutter formulate a “simpler, flatter” organisation designed to enable faster decision making and clearer accountabilities.
This has been driven by an increased focus on cost, which Flutter said will allow it to continue investing in order to maintain its market position in the UK and Ireland.
Flutter said in a statement: “These proposed changes reflect the next phase of our integration, as we look to consolidate parallel operating models and position the business to continue growing against a more challenging operating environment.
“While we have sought to minimise the impact this will have on our colleagues, with most employees affected being redeployed into alternative or newly created roles, the proposals may lead to a small number of job losses.
“We are communicating with those affected as part of a consultation process and will be providing them with the support they need throughout.”
The cutbacks have come at a time where UK operators are preparing for the enforcement of stricter regulation as a result of the government’s gambling act review.
When the Conservative party elects a new leader to replace outgoing Prime Minister Boris Johnson, a white paper will be published on the topic.
It is expected to detail wide-ranging legislative changes for a sector which has so far been governed by a law created in 2005.
Proposals are likely to include online casino stake limits of between £2 and £5 and stricter affordability checks to ensure that consumers are not spending beyond their means.