The Stars Group cuts employee headcount in Dublin
Toronto-headquartered operator undergoes “cost-optimisation” process amid international headwinds and imminent Flutter merger
The Stars Group (TSG) has reportedly engaged in a year-long rationalisation process leading to a significantly reduced headcount in its Dublin office.
The Irish Times reports the Toronto-listed operator has cut its employees by just over 20% during the last 12-15 months – from 330 to 260 – as TSG dealt with international headwinds for its flagship PokerStars brand and prepares for its impending mega-merger with Flutter Entertainment.
Sources close to the business alleged that customer service employees have been put on a “protective notice” period, with jobs at-risk in December 2020.
Other affected staff have been offered alternative positions within the business, including in Bulgaria and India, while others have been told their jobs will be phased out and are not being actively replaced.
According to the Irish outlet, affected divisions reportedly include trading, security, quality control and software development.
Despite claims the cuts were in preparation for the Flutter combination, a spokesperson for TSG said regulatory “headwinds” in its international segment were predominantly to blame.
In its 2019 financial results, the operator reported the closure of its Swiss-facing PokerStars business in July, as well as “tougher operating conditions” in other markets such as Spain and Sweden.
“As a result, and independent of the potential deal with Flutter, we pursued an operational initiative, including cost-optimisation opportunities, as we’ve done in the past, to reassess our fixed-cost base and realign our costs with our global growth strategy,” the firm said in a statement provided to EGR.
“We believe our proposals will help to position us to deliver long-term sustainable growth. Dublin remains an important hub for the business.”
TSG international revenue fell by 8.8% during 2019 with a double-digit revenue decrease in its PokerStars brand.
To address the slump, the operator has targeted several product launches and a significant increase in marketing spend during 2020.
Flutter Entertainment expects the merger with TSG to potentially complete in either Q2 or Q3 of this year.