Flutter Entertainment is set to implement significant job cuts in its UK and Ireland operations, with Leeds and Dublin bearing the heaviest impact. This restructuring follows just three weeks into Dan Taylor's role as group CEO, marking a decisive shift in the company's strategy.
In April, the remote gaming duty increased sharply from 21% to 40%, with a further rise in remote betting duty expected from 15% to 25% by April 2027. Consequently, Flutter anticipates that these changes will lead to an estimated $540 million reduction in adjusted EBITDA by 2027.
Kevin Harrington, CEO of Flutter’s UK and Ireland operations, pointed to the tax hikes as a transformative factor for regulated operators, stating that they have "fundamentally changed" the economic landscape. He emphasized that such steep rises in taxation cannot be absorbed without a reduction in the fixed cost base, necessitating a restructuring of the business for future sustainability.
Reports indicate that more than 450 jobs in Leeds are at risk, where Flutter has a workforce of approximately 1,700. In Dublin, around 240 jobs are anticipated to be eliminated, primarily at the Clonskeagh headquarters where the company employs 1,770 staff. Those potentially affected work in various departments including finance, HR, technology, training, and legal, with offers for voluntary redundancy available.
The impacts are not limited to the UK and Ireland, as the offshore site of Betfair Romania Development is also facing cuts, with around 300 employees in Cluj-Napoca expected to depart. Local business consultant Doru Șupeală has suggested that the actual number could be closer to 350-400, warning that without sufficient voluntary departures, the situation could become quite severe. UK&I employees in Porto are also included in the scope of these cuts.
This latest development positions Flutter as the largest operator to reduce its workforce amidst a challenging tax environment in the UK market. The proposed layoffs, numbering up to 1,400, represent nearly 16% of Flutter’s UK&I workforce of about 9,000.
Interestingly, these job reductions will not include Flutter’s retail operations. The group had previously announced plans to shut down up to 100 Paddy Power shops, putting around 400 jobs at risk. However, the latest wave of cuts does not affect individual betting shops in Ireland.
The timing of these announcements is noteworthy, as Dan Taylor took over as CEO on October 1. Prior to this, he led Flutter’s international division and served as group president focused on improving underperforming US operations. This restructuring marks a significant contraction in the company's foundational markets, coinciding with a troubling decline in its share price—down more than 65% over the past year. Flutter also faces growing competition from emerging players like Kalshi and Polymarket in the prediction market sector, alongside a temporary ban on online betting imposed by Brazil.
As the UK budget approaches, there are discussions that machine games duty may increase to 40%, with 90 Labour MPs urging the Chancellor to raise the rate on Category B machines.
Grainne Hurst, CEO of the Betting and Gaming Council, described Flutter's job cuts as "another devastating blow to workers and families" in the industry, calling on government officials to recognize the harm already inflicted by existing tax increases before adding more burdens. Other operators, including Bet365, Betfred, and Evoke, have also announced job cuts or shop closures this year due to rising duties.
