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Tabcorp announces job cuts to stock exchange

 

The COVID-19 outbreak has begun to bite at Tabcorp with the wagering giant announcing the standing down of more than 700 employees until the end of the financial year.

Tabcorp provided a statement to the Australian stock exchange advising of the job cuts, which it says is a measure to protect jobs long term.

Tabcorp is also exploring whether it is eligible for Federal Government assistance under the Job Keeper Wage Subsidy initiative.

The organisation’s remaining employees will take at least one day of leave a week while Tabcorp chief executive David Attenborough will take a 20 percent pay cut until June 30.

Tabcorp’s chairman and non-executive directors have taken a 10 percent reduction in fees while the business has shed 160 technology contractors.

The company has suspended collection of fees owed by pubs and clubs for Sky Racing, TAB and Keno contracts among other measures.

Tabcorp has also moved to shore up cashflow by delaying payment of some payroll, Keno and lotteries taxes relating to the next six months, which amount to about $40 million per month.

“This continues to be a very challenging time for our people, businesses, partners and the community,” Attenborough said in a statement.

“We are committed to working proactively and collaboratively with all our stakeholders so that we can collectively emerge from the COVID-19 period as strongly as possible.”

Tabcorp shares were trading at $3.83 on March 1 before dropping to $2.18 on March 23.

However, the Tabcorp share price has improved in recent days to close on Tuesday at $2.77.