Ladbrokes Coral to cut 700 London jobs

Staff at Ladbrokes’ and Gala Coral’s London offices were on Friday informed as many as 700 London-based roles will be cut following the imminent merger of the two firms, EGR has learned.

In an email to Gala Coral staff, the operator’s CEO Carl Leaver (pictured, left), who following the merger will lead the integration from his new position of executive chairman, said there would be “around 600, maybe up to 700, fewer positions” at the combined firm – a headcount reduction of approximately 50%.

In kick-starting the redundancy consultation process, Leaver also confirmed the expected closure of Ladbrokes’ Rayners Lane office, that the combined firm’s HQ would be Gala Coral’s Stratford base, and that a small corporate-focused office would be established on Victoria Street in central London.

EGR understands no voluntary redundancy packages will be made available with Ladbrokes staffers securing roles at the enlarged firm to be reimbursed for any additional travel expenses.

Staff which fail to secure a role will be offered “enhanced redundancy terms” of two weeks’ pay per full year of service with a floor of eight weeks’ pay and a cap at 40 weeks.

Leaver also said the selection process for the combined firm would be based “purely on merit” and anticipated this would begin for most positions by November.

“Yesterday [Thursday] we began the collective consultation process with our support office colleagues regarding our proposed merger with Ladbrokes,” Leaver told staff.

“Our Employee Consultation Committee, which comprises the individuals elected to represent the constituencies impacted by the process, met for the first time to discuss a number of merger-related matters that will affect our colleagues.”

He went on: “in integrating the two companies and removing duplication, we anticipate that there will be around 600, maybe up to 700, few positions.

“However, until the detailed organisation design is completed we cannot confirm the numbers in each department or location.”

Ladbrokes CEO Jim Mullen made a similar announcement to his staff on Friday.

Leaver added that while the closure of Rayners Lane would “have less impact for us, the arrival of Ladbrokes colleagues from Rayners Lane will mean some moves within, or perhaps in exceptional circumstances out of 1 Stratford Place”.

With the enlarged group looking to integrate two rival firms, Leaver said the Ladbrokes Coral would make the office “a welcoming environment for everyone, regardless of which business they come from”.

And that assuming the proposed merger goes ahead, Leaver added that “we will be one team from day one, and our support office will be designed to reflect that”.

News of the job cuts come after the UK Competition and Markets Authority ruled the merger could go ahead on the basis the combined firm dispose of between 350 and 400 high street sops to allay competition fears.

Last week EGR revealed Ladbrokes and Coral had set out its new senior management team which included the appointment of five Ladbrokes and 11 Gala Coral staffers as well as three external appointments, including former William Hill and Betfair director Ian Chuter as digital COO.