New Zealand operator TAB cuts employee headcount by 30%

New Zealand’s Racing Industry Transition Agency (RITA) has confirmed 230 NZ TAB employees have been made redundant as part of cost-saving measures to mitigate the financial impact of Covid-19.

RITA, the betting company’s parent entity, is aiming to save more than NZ$11m per year to ensure the livelihood and sustainability of the business, with over 150 permanent staff set to exit the business due to the downturn, almost 30% of staff.

New Zealand sports betting agency TAB average monthly revenue fell almost 50% and with customer numbers down more than 35% as a result of the pandemic.

TAB services will be severely impacted by the reductions with four retail branches set to close permanently and long-time TAB sports broadcaster Mark Stafford also set to depart the business.

In addition, the measures will see an increase in self-service terminals and the reduction in original programming centred around New Zealand racing.

An independent review of the structure of NZ TAB’s executive leadership team is underway with consultation on any proposed changes expected to start next week.

Instead of writing something that takes 2 mins to read – thought I’d do something that takes 2 mins to watch pic.twitter.com/yOlCtefVn9

— Mark Stafford (@stafnz) May 26, 2020

RITA executive chair Dean McKenzie said while the decision was a difficult one, it was essential to protect the longevity of the industry.

“The implication of Covid-19 has extended beyond the immediate impact to the TAB, with racing and sport continuing to look unpredictable over the next year,” McKenzie said.

“The reality is these changes will help the TAB to be a leaner, more efficient business and focused on driving our core wagering and gaming offering to our customers.” McKenzie added.

RITA had already received a NZ$50m bailout from the New Zealand government to prevent insolvency with NZ$26m used to pay off its supplier commitments.