Bally’s Corporation is going to lay off 15 per cent of workers from its North America interactive division.
US.- Bally’s Corporation announced in a filing with the US Securities and Exchange Commission its decision to cut 15 per cent of the workforce from its North American interactive division as part of a restructuring plan for the business segment.
According to the company, the reduction in staff headcount for the division would cost between $1m and $15m in cash severance payments, with the redundancies to take place during the first quarter.
Bally’s said the elimination of positions within the interactive business is subject to local law and consultation requirements in certain countries, as well as the operator’s business needs.
Lee Fenton, Bally’s chief executive, said in a letter to Bally’s Interactive employees it was a “difficult decision” to cut jobs but would help the business become “stronger and fitter” for the future.
“We’ve reflected hard as a business to come to this conclusion,” Fenton said.
“Everyone put in so much effort last year, and I am proud of what we achieved together. However, we didn’t manage to achieve everything we had hoped for.
“Our mature businesses continue to grow but are facing into macro uncertainties. Our North American business remains an investment market, where the returns will be reaped but we can now see that this will take some time to come to fruition, so we need to manage our cost base appropriately.”
In his letter, the CEO explained that while the Covid-19 pandemic had a positive impact on Bally’s Interactive, this led to the business hiring staff at “full pelt,” which he said led to over-hiring in some areas, which he accepted full responsibility for.
“We have been considering how we rescope our roadmaps to ensure they are right-sized,” Fenton wrote. “This is an opportunity to reset the business, so let’s ensure that these changes, whilst made with an extremely heavy heart, put us on an even stronger footing, where we can operate with pace, agility, and focus.”
Fenton said Bally’s would fully support those affected by the cutoffs with fair terms and treatment, and that the company “will offer more than is required in all the markets we operate in”. They will be contacted in the coming days
“I truly believe we will emerge stronger in many ways; we would not be pursuing this unless this was our belief,” Fenton concluded in his letter. “The employees being affected aren’t just colleagues, they’re friends. Please rally around them and let’s support each other through these changes.”