GVC are in the news once again, as it appears 1,600 jobs are under threat within the company. As much as 6% of their staff members could be out of a job next year, in figures detailed by a report from the company. This has caused a massive ripple effect across the industry, as it could be indicative of a wider trend.
Cause and Effect
It’s been a bumpy road for GVC Holdings since they finalised the takeover of Foxy Bingo. In recent months, they’ve also been hit hard by gambling industry fines, which will have drastically affected their profits recently.
Because of the merger, some staff have been moved or made redundant, due to existing staff members in the parent company. To make the merger a success, they will likely need to look into cost cutting measures which reduce the amount of excess staff. Their London based headquarters will be merged with others in the area too.
Even government regulations, like a potential limit on FOBT maximum bets, have been having an effect on the value of the company. It has been speculated that this kind of new legislation could potentially cost the company £800 million. This would cut into their profits massively and could impact the decision to let go of so many staff members.
Wider Industry Speculation
It does seem that in the current mergers and acquisitions climate, some staff members are finding themselves to be surplus to requirements. This is understandably difficult, as many posts within the gambling sector have been moved overseas to territories like Gibraltar or Malta.
It will be interesting to watch if GVC Holdings look for another larger company to acquire or if they will allow this merger to settle first. We’ll keep you updated with the wider story as it develops so watch this space.