Fears Of Massive Job Cuts Ahead Of Paddy Power And Betfair Merger
One of the largest merger deals of the year is that between Paddy Power and Betfair which is set be worth over £5 billion. The deal is still to be approved by the Competition and Consumer Protection Commission (CCPC) but it has already raised concerns as to possible job cuts.
There are currently around 5000 people employed in Paddy Power and around 1900 in Betfair. Part of the cost cutting measures envisioned in the merger are set to come from job cuts which could save as much as £25m in labor costs. A report in the Sunday Times has pointed out that the estimated savings of £25 million in labor costs could already amount to half of the £50m planed by both parties. The deal is yet to be finalized with shareholders of Paddy Power expected to vote on the issue on December 21.
Another issue which could delay the deal according to the Irish Times is the delay by the Competition and Markets Authority on the Irish side which reportedly only sought information it required from the two companies this week and which could result in the agency’s investigation exceeding the 120 working days they need to complete their job.