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MELBOURNE - Tabcorp Holdings, Australia's largest gaming group, expects to save at least A$12 million ($13.9 million) by axing at least 100 jobs as it reshapes to have two main arms, Australian business and casinos.
Tabcorp yesterday elaborated on a plan announced at its annual meeting last week, saying the revamp would add to the A$9 million it earlier said it would save with a new shared services centre, for total annual savings of at least A$21 million.
"To remain ahead of our competition we must reduce our costs, streamline our operations and pursue growth opportunities in our businesses," Tabcorp managing director Matthew Slatter said.
Tabcorp said the job losses would not kick in until at least February.
It said last month it expected flat first-half earnings, but saw stronger profits in the second half as its cost-cutting effort began to pay off.
The Australian business division, competing against Tattersall's, will bring together Tabcorp's wagering distribution arm, including pubs, clubs and betting outlets, as well as its racing and media arm, which includes Sky Channel and 2KY Radio.
The casinos division includes Tabcorp's three casinos in Queensland and the Star City in Sydney, and competes against Publishing & Broadcasting's Australian casinos.
- REUTERS
