Hundreds of jobs could be up for the chop should GVC’s takeover of Ladbrokes Coral go through, the bookmaker admitted in a new outline of the deal.
Although the deal is expected to fetch a potential £3.9bn, the two companies said up to 6 percent of their combined 26,800 workforce – around 1,608 staff – could lose their jobs.
The jobs likely to be under threat are in areas including marketing, customer services and administrative functions. However, Ladbrokes’ network of high street bookmakers is not likely to be affected, the company assured.
Ladbrokes Coral’s head office in central London is expected to close, with some of those roles moving to GVC’s office on the Isle of Man.
The forecast of job cuts came as the two companies outlined the terms of a tie-up worth up to £3.9bn and Ladbrokes handed its shareholders a surprise dividend payout worth £78m.
However, the eventual price tag of the deal to create the UK’s largest public betting firm depends on the government’s review of the maximum permitted stake on FOBTs, which provide half of Ladbroke Coral’s income.