PokerStars announces redundancies in Isle of Man HQ
Operator says it is “optimising costs” following headwinds on the international PokerStars business
PokerStars has announced a number of redundancies in its Isle of Man headquarters, citing headwinds in its international business.
Staff were told about the job losses on Wednesday, according to local news outlet IoMToday.
Stars declined to comment on the exact scale of job losses, but said in a statement the cuts were part of its “cost-optimisation” initiatives.
The firm said: “As we’ve previously noted, our international segment (PokerStars) has faced many headwinds over the last year, including disruptions in our key markets.
“As a result, we are pursuing operational initiatives, including cost-optimisation initiatives, as we’ve done in the past to reassess our fixed cost base and realign our costs with our global growth strategy.
“We believe the proposed reductions in headcount on the Isle of Man are a component of our overall plans to position us to deliver our mid-term growth targets and long-term sustainable growth.”
PokerStars Hq on the Isle of Man
The firm reported a 2.5%cc decline in revenues from its international business to $322m in Q2, with significant impacts from so-called disrupted markets like Norway and Russia.
In its H1 update, the firm warned FY19 revenues could come in up to $200m below previous estimates, with a new range of $2.5bn-$2.75bn.
The Stars statement issued Wednesday added: “’Apart from the personal impact on affected individuals, today’s news will have little foreseeable impact on our overall operations in the Isle of Man, which has always been a critical operational hub for the company and will remain so.”