Ladbrokes Coral could cut down 1600 employees with its merger with it’s online rival GVC.
Ladbrokes Coral is an offline bookmaking and gaming company operating specially in the UK, while GVC is an online rival from the Isle of Man, which operates in more than 20 countries.
Most of the betting shops owned by Ladbrokes will get closed according to the merger, which leads to job vacancy in head office and support staff.
Merger of the Rivals
Due to this merger, most of the Ladbrokes betting shops will be closed and remaining will be handled by Andy Hornby (Ex Boss of HBOS Bank) in the UK. He is not on the boards member but is expected to bring ROI to the company.
Both the companies have mutually agreed that if they want to get benefit from this deal, then they will need to renovate the operations. Ladbrokes coral spokesman said that after the merging with GVC, the company got hike in shares.
GVC’s offer is worth up to £3.9bn, but could fall by £800m if the government opts to slash the maximum permitted FOBT stake to £2. This is because the machines bring in more than half of bookmakers’ revenues and GVC does not want to pay the top price if a big chunk of Ladbrokes’ income could disappear.