Flutter Entertainment is set to cut up to 1,400 jobs across its UK and Ireland operations, with significant layoffs expected in Leeds and Dublin. This restructuring comes shortly after Dan Taylor took over as group CEO three weeks ago.
In April, remote gaming duty surged from 21% to 40%, while remote betting duty is slated to increase from 15% to 25% by April 2027. Flutter anticipates these tax changes will lead to a $540 million reduction in adjusted EBITDA by 2027.
Kevin Harrington, CEO for Flutter UK and Ireland, pointed to the increased taxes as a critical factor that has “fundamentally changed” the economic landscape for operators. He emphasized that such a significant tax hike necessitates reducing the fixed cost base, prompting the substantial job cuts.
Reports indicate over 450 positions could be affected in Leeds, where Flutter has around 1,700 employees. In Dublin, as many as 240 roles are at risk, particularly within the Clonskeagh headquarters, which houses 1,770 staff across various functions including finance, HR, and legal. Affected employees will be offered voluntary redundancy.
The workforce reduction will also impact Flutter's offshore hubs. Betfair Romania Development is expected to lose approximately 300 employees in Cluj-Napoca, with estimates from local sources suggesting the figure might reach 350 to 400. Staff in Porto will also face cuts.
This move positions Flutter as the largest operator to announce job cuts amid the UK’s most significant tax overhaul in recent years, with the planned reductions making up nearly 16% of its 9,000-strong UK and Ireland workforce.
Interestingly, Flutter’s retail sector remains unaffected by this job reduction round. Last month, the company revealed plans to close around 100 Paddy Power shops, potentially impacting 400 jobs. However, individual betting establishments in Ireland are exempt from these latest layoffs.
Taylor, who officially succeeded Peter Jackson on October 1, has moved quickly to downsize operations in Flutter's foundational markets. His previous roles include running Flutter’s international division and serving as the group president focused on improving US operations. Flutter's stock has plummeted over 65% in the last year, amidst increasing competition from emerging prediction markets and a temporary suspension of online betting in Brazil.
Harrington expressed his commitment to supporting employees affected by the cuts during this challenging time while reiterating that Flutter must streamline its costs due to the new tax structure. The restructuring process itself is projected to incur costs of $80 to $90 million and is expected to be recorded in Q4 2026.
These job cuts occur just ahead of the UK budget, where there is speculation about doubling the machine games duty to 40%. A collective of 90 Labour MPs has already urged the chancellor for increased taxation on Category B machines.
Grainne Hurst, CEO of the Betting and Gaming Council, criticized the redundancies as a significant setback for workers and their families, highlighting the adverse effects on the regulated sector from ongoing tax increases. Other companies in the sector, including Bet365, Betfred, and Evoke, have also reported job losses or store closures this year in response to heightened taxation.
