Australian betting and gaming giant Tabcorp Holdings has parted ways with numerous workers in an effort to streamline its operation and reduce business costs. This comes amid financial and regulatory difficulties for the company.
Tabcorp Wants to Streamline Its Business
According to a report by the Australian Financial Review, a Tabcorp spokesperson said that Gillon McLachlan, the company’s chief executive officer, has laid off 10% of the entire workforce since October’s Annual General Meeting. This translates to approximately 200 roles that have been dismissed in order to reduce costs and simplify the overall business.
The Australian Financial Review noted that it understood the cuts were happening across all divisions, including Tabcorp’s media arm. However, it also understood that Sky Racing, Tabcorp’s horse-racing broadcasting channel, has so far been unaffected by the layoffs.
The Company Parted Ways with Notable Executives
These layoffs come amid a somewhat difficult moment for the Australian betting and gaming company. In September, Tabcorp Holdings also announced the exit of chairman Bruce Akhurst who had chaired Tabcorp ever since its split off from The Lottery Corporation in 2021.
Akhurst officially departed after the Annual General Meeting in October 2024 and was replaced by Brett Chenoweth. As the former CEO of APN News and Media, Chenoweth is expected to provide Tabcorp with crucial expertise in this difficult period.
Earlier this year, Adam Rytenskild announced his sudden and immediate exit as CEO and managing director of Tabcorp. He was prompted to resign by the board, which had become aware of inappropriate and offensive language that the former CEO allegedly used. Rytenskild, who has been a staunch critic of Australia’s “ineffective regulations,” said he doesn’t remember making such a remark and regretted having to leave a company that has been an “enormous part” of his life.
Tabcorp Had to Pay Several Big Fines
In other news, Tabcorp has also been encountering regulatory setbacks, including a recent AUD 263,000 fine from the Australian Communications and Media Authority. The fine was handed to the operator because of an illegal in-play bet that it took, despite Australia’s strict prohibition of such products.
In August, the Victorian regulator issued an AUD 4.6 million fine to Tabcorp for violating its obligations on multiple occasions.
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