Entain announces further redundancies following UK Gaming Tax rise

Gibraltar’s largest private-sector employer, Entain, has begun consultation on another round of proposed redundancies, with around 400 Customer Care roles potentially affected across a number of locations, including Gibraltar.

An internal communication to employees highlighted the “significant betting and gaming tax headwinds” facing the business. This follows UK tax changes which include an increase in Remote Gaming Duty from 21 to 40 percent.

The company has also made public a letter to UK Prime Minister Andy Burnham, voicing concerns over the impact of further increases in gambling taxes.

The latest announcement follows a previous round of redundancies in July, when Entain confirmed to GBC it had begun implementing organisational changes which would “regrettably impact a number of roles across the Group over the months ahead”.

In correspondence seen by GBC, the company says it is proposing a “simpler, less complex” and more cost-efficient operating model within Customer Care.

Around 20 percent of Customer Care roles could be cut, with employees told a new Customer Care Operations structure is expected to come into effect from December, subject to consultation. Some members of staff have been informed their roles are not at risk and their positions will remain unchanged.

In response to GBC questions, Entain confirmed the proposals could result in around 400 of its 2,000 Customer Care roles being removed.

It says it is simplifying its Customer Care model across multiple locations as part of efforts to address the impact of increased UK gambling taxes, as well as becoming what it describes as a “sharper, fitter and more agile business”.

The company says the changes are intended to reduce duplication, establish centres of excellence and improve the experience for customers.

Chief Executive Stella David says the decision has not been made lightly, and that the company’s immediate priority is supporting colleagues who may be affected.

Entain is set to leave the FTSE 100 later this month, after its shares fell significantly over the past year.

GBC also asked Entain how many of the roles at risk are based in Gibraltar. The company has not provided a figure.