BetMakers to cut workforce by 23% as part of cost reduction and global efficiencies program

Racing and betting solutions supplier BetMakers Technology Group is letting go of 23% of its employees as part of a cost-base reduction and global efficiencies program. The company reported that its total number of employees is projected to be 440 in Q1 2024, compared to 568 employees on December 31, 2022, implying over 100 jobs will be terminated.

The effort is expected to result in "significant" operating overhead reductions and savings across the business moving forward. The cost of executing the plan is forecasted to be approximately AUD 2.5 million ($1.6 million) and is expected to bring the company’s expenses down by AUD 20 million ($12.9 million). 

As per Chief Executive Officer Jake Henson, the changes are made with the "aim to provide the business with a clear path to profitability while also providing a more streamlined operating structure to maximize future growth opportunities.”

Speaking on the restructuring, Henson commented: “The company’s cost base has been reset on the back of the deployment of proprietary technology and a strategic review of our operating model. BetMakers is committed to providing long-term value to shareholders and this restructuring is an essential step towards achieving that goal.”

He further said: “For our customers, who are at the core of our value creation process, we are committed to delivering best-in-class levels of service and quality. The investments in our technology and the extended rollout of our platforms and products into all regions both domestically and globally will support this ongoing commitment.”

The program announcement follows a series of Board and management changes unveiled in January with the intention to enable "the optimization of the business in order to reach its full potential." The changes are designed to affect "a strategic reset of the business," with a focus on operational discipline, specifically a return to positive cashflows, cost efficiency, and optimal capital management, noted Non-Executive Director Nick Chan.

In its latest update, the firm also announced a reduction in cost is already moving forward, primarily driven by the restructuring of global operations and technology. "The operational restructure has been made possible by streamlining and consolidating key software offerings and leveraging technology monitoring and reporting capabilities," noted the business.

BetMakers Executive Chairman Matt Davey added: "As detailed when we presented our Q2 FY23 results and reiterated in our Q3 FY23 announcement, the company is focused on delivering operational efficiencies, simplifying our global operating model, and positioning the company for profitable growth.”

He further noted:  “Management and our global team have delivered on this promise, and we now expect the company to be well-positioned to drive operating leverage as we expand our revenue base. 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 reform comes on the heels of Bet Makers losing nearly 75% of its market valuation in the past 12 months, partly owing to rising interest rates.