BetMakers to Axe over 100 Jobs under AU$20M Cost Reduction

Australian wagering technology supplier BetMakers Technology Group is about to implement a global cost-cutting program that will see its staff reduced by more than 100 jobs.

Bringing Down Staff and Overheads by 23%

The execution of the program costing AU$2.5 million ($1.68 million) is expected to bring expenses down by AU$20 million ($13.4 million) by reducing annualized staff and overheads by 23% and resetting the business on a path to profitability, reported The Australian Financial Review.

According to BetMakers’ chief executive officer, Jake Hanson, the decision to implement the cost-cutting program is a result of a four-month strategic review that considered resetting the cost base “on the back of the deployment of proprietary technology” and in line with the group’s commitment “to providing long-term value to shareholders.”

“The changes made aim to provide the business with a clear path to profitability while also providing a more streamlined operating structure to maximize future growth opportunities,” Hanson said about the plans that will bring employee headcount down to 440 from the current 568 people on the payroll.

Matt Davey, executive chairman of BetMakers Technology Group, also commented on the cost reduction program, adamant that once implemented, the program will steer the group on a path to profitable growth and bring long-term benefits.

“Importantly, this restructure will allow increased focus on our core platform and products, improving the benefits and value we can deliver to our domestic and international customers,” the executive chairman of the ASX-listed company said.

Responding to Falling Investor Confidence

BetMakers was one of the many companies that saw their stock collapse on the back of rising interest rates, having lost almost 75% of its market valuation in the past 12 months. One of the company’s major shareholders, Waterhouse VC, contributed to the slump by divesting AU$4.6 million ($3.1 million) worth of shares in April.

In February, the Australian-based wagering technology group refused to pay a bonus package worth AU$7 million ($4.7 million) to Matthew Tripp, citing failure on his side to deliver “a transformational deal” for the company while exclusively advising the business on B2B opportunities.

Last year, BetMakers joined Rupert Murdoch’s News Corp Australia and Las Vegas-based Tekkorp Capital in backing Tripp’s bookmaker, Betr. News Corp reportedly invested AU$49 million ($32.9 million) in the nascent sportsbook operator in six months while BetMakers became its exclusive technology provider.

Despite continually executing its core strategy by launching its fixed odds racing app across US jurisdictions, Betr has not been as successful as expected, with customers complaining about technical glitches since its launch, and has been put up for sale since March.