Paddy Power cuts 1,400 jobs and blames betting tax rises

Flutter, the company behind Paddy Power, has announced plans to cut up to 1,400 jobs, linking the proposed reductions to higher taxes imposed on the gambling industry.

Tax rises cited in jobs announcement

Flutter’s boss said the company “cannot fully absorb” the tax increases. The comments connect the planned workforce reduction with the additional costs created by the tax changes.

The announcement places taxation at the centre of the company’s explanation for the cuts. It also highlights the pressure that higher levies can create for businesses operating in the gambling sector.

What the announcement means

The proposed reduction could affect as many as 1,400 roles at Flutter, the owner of the Paddy Power brand. The company has not been reported as saying that all 1,400 positions will definitely be eliminated; the plan is for cuts of up to that number.

The statement provides no further details on the timing of the reductions or how the proposed cuts would be distributed across the business. For now, the central issue is Flutter’s response to rising gambling taxes and its decision that the company cannot absorb their full effect.

Outlook

Flutter’s announcement links the future shape of its workforce to the cost impact of gambling industry tax rises. Further details about the proposed job cuts were not provided.