New CEO Gillon McLachlan’s quest for a fitter and leaner Tabcorp has taken a major step forward as the wagering giant slashed 200 full-time roles plus the use of external consultants.
Tabcorp confirmed on Wednesday that it had been making headcount reductions over the past few weeks which amount to about 10 per cent of its full-time workforce.
The roles were being reduced across all aspects of the business, while McLachlan has also slashed the number of consultants utilised by Tabcorp in the past month.
“Tabcorp is creating a fitter organisation and a new cadence to move more quickly in a changing market,” Tabcorp said in a statement.
“As outlined at the company’s AGM, Tabcorp has an ongoing cost-reduction program. We have reduced the number of roles and external consultants to create a simpler and more efficient way of working that can deliver an even better customer experience.”
“Tabcorp acknowledges the significant contribution and service of staff who played a key role in building the foundations of Tabcorp during the first phase of our transformation.”
McLachlan, who started in his role in September, flagged the changes in a recent address to the Tabcorp AGM.
“I also want to stress to shareholders that reducing cost and ensuring we have the right operating model is a top priority for me,” he said.
“Our Genesis cost program will continue in FY25 and we are targeting further savings this financial year. In addition, I am working with the team on a detailed review of our entire operating cost base as well as our capital spend to identify and execute on further opportunities to reduce our cost base. I’m focused on making Tabcorp a fitter organisation.”
McLachlan said he was seeking “a reset of team, culture and cadence around the business”.
Bren O’Brien
“I acknowledge much work has been done in reducing headcount, management layers and outsourcing transactional work. But I am clear more can and will be done,” he said.
“This time next year I’m confident that we will be a simpler, more cost-effective organisation.”
McLachlan is expected to announce changes to his executive team in the coming months, as well as a revised strategy for the publicly listed company.
