The acquisition of Tombola by Flutter, finalized in January 2022 for a hefty £402 million (€463.6 million/$488.7 million) following its announcement in November 2021, is anticipated to result in the dismissal of 250 employees after a thorough operational evaluation.
Last week, reports emerged suggesting that the job cuts were a consequence of cost-reduction strategies implemented by the online bingo enterprise. Today (October 16), a Tombola representative confirmed to iGB that approximately 250 positions are in jeopardy. However, they emphasized that opportunities for reassignment, particularly in the northeastern area, would be available.
Tombola also acknowledged that those facing potential job losses are part of its customer service team, encompassing chat, customer support, and safe gaming units.
Over the past twelve months, the industry has witnessed a significant increase in job cuts. Recently, another gambling behemoth, Entain, substantiated reports of layoffs within its Australian operations. Earlier reports indicated that the company had “dismissed more than 50 individuals.” In August, Catena Media announced the sale of its UK and Australian online sports betting brands to Moneta Communications for €6 million – stating that it would be consulting on job cuts in the UK and Malta.
Tombola, as part of a reorganization strategy, has declared it will be reducing its workforce by 15% in its North American interactive division.
The firm will continue to operate in the Northeast.
A representative stated in a press release that the staff will be consulted.
“We are announcing some proposed adjustments to our customer service teams today, which follow a thorough examination of our operations,” the representative stated. “As a consequence, some colleagues will be involved in a formal consultation procedure which will include substantial opportunities for reassignment within the business, but will unfortunately lead to some job losses.
“Colleagues involved in this process have been notified and our priority is to support them and their teams during this period of transition.”
Tombola reaffirmed its dedication to the North East of England and stated that Sunderland will remain its main office.
“Tombola is a leader in the field of customer protection, including a maximum wager of £2 on all our online bingo and arcade games,” the representative continued. “We are also proud of our role as a significant employer in the North East of England and Sunderland and plan to continue investing in the region in the future.”
Despite the potential job cuts, Tombola’s workforce has expanded since the Flutter acquisition. Tombola had 769 employees at the end of 2021, of which 629 were based in the UK.
Currently, following the acquisition by Flutter, the firm boasts a workforce of 847 individuals, with 706 hailing from the United Kingdom.
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