Flutter Entertainment is set to make significant cuts, with up to 1,400 jobs potentially eliminated across its UK and Ireland operations, primarily affecting Leeds and Dublin. This restructuring plan rolls out just three weeks into Dan Taylor’s leadership as group CEO.
The driving force behind these layoffs is a recent tax overhaul: remote gaming duty has surged from 21% to 40% as of April, while remote betting duty will increase from 15% to 25% by April 2027. Flutter anticipates these tax changes will impact the company’s adjusted EBITDA by $540 million in 2027.
Kevin Harrington, CEO of Flutter's UK and Ireland division, acknowledged the severe toll the new taxes have taken on business models for regulated operators in the area, emphasizing that such drastic job reductions result directly from the tax hikes. "As we warned a year ago, we cannot fully absorb a rise of this magnitude without reducing our fixed cost base and therefore must restructure our business so that we can best position ourselves for the future," Harrington stated.
In Leeds, the situation is particularly pronounced, with reports indicating that over 450 positions are at risk within the local workforce of about 1,700. Meanwhile, Dublin, home to approximately 1,770 employees, faces job threats affecting around 240 staff in various departments including finance, HR, technology, training, and legal. Those impacted will have the opportunity for voluntary redundancy.
The offshore teams are not exempt either, as Betfair Romania Development has advised that 300 positions held by its UK and Ireland teams in Cluj-Napoca will be eliminated once the restructuring concludes. Doru Șupeală, a local business consultant, suggested the actual number could reach between 350 and 400 and warned of competition among staff for voluntary departures. Additionally, employees based in Porto will also be affected.
These job cuts position Flutter among the largest operators responding to a significant taxation shift in the UK market. The upcoming layoffs represent nearly 16% of the UK and Ireland workforce, estimated at 9,000. It’s worth noting that the current cuts do not include Flutter’s retail sector. The company previously announced plans to close up to 100 Paddy Power shops, putting 400 jobs at risk, but those retail positions are distinct from the latest cuts affecting corporate roles.
These reductions come at a challenging time for Taylor, who officially took over on October 1. Prior to this, he managed Flutter’s international division and had served as group president with a focus on improving underperforming U.S. operations. His inaugural action as CEO marks a significant downsizing in the company’s key markets, occurring as Flutter’s share price has dropped over 65% in the past year, amid growing competition from prediction markets like Kalshi and Polymarket and a temporary ban on online betting in Brazil.
In the wake of these developments, Harrington highlighted his commitment to supporting affected employees during this difficult period, reiterating that Flutter must adapt its cost structure in light of the new tax framework. He emphasized that despite ongoing challenges, Flutter remains positioned to capture market share as the largest operator in the UK.
The financial implications of the restructuring are expected to be significant, with costs projected between $80 million and $90 million (€70 million to €80 million), set to be recorded in the fourth quarter of 2026. Executives believe these changes will ultimately safeguard investments in customer service and product offerings.
Flutter’s job cuts emerge just ahead of the UK budget, where further tax increases, particularly a potential doubling of duties on machine games to 40%, are being debated. Concerns are rising, with 90 Labour MPs urging the Chancellor for a higher taxation rate on Category B gaming machines.
Grainne Hurst, CEO of the Betting and Gaming Council, described the redundancies at Flutter as a devastating hit to families and employees within the sector. She called on government officials to recognize the ongoing damage sustained by regulated operators before implementing additional tax hikes. Other companies such as Bet365, Betfred, and Evoke have similarly faced job reductions or shop closures this year as a consequence of increasing tax obligations.
