Bally’s Interactive, the digital segment of US casino gaming giant Bally’s Corporation, will lose around 15% of its work force in a freshly announced round of layoffs. The move comes as Bally’s attempts to achieve profits in North America, with the company due to contact affected employees in the coming days.
stronger and fitter for the future”
Bally’s announced the news in a letter to its employees on Thursday this week. Lee Fenton, Bally’s Corporation CEO, included a statement to staff in the letter. He said: “Companies which take tough but decisive steps to effectively manage costs will be stronger and fitter for the future.”
The company’s interactive arm includes online sportsbook Bally Bet, the Bally Casino brand, and daily fantasy sports operator Monkey Knife Fight. In the last reported quarter, this segment posted a $22.7m net loss, and Fenton acknowledged that the company may have over-hired in this area during the COVID-19 pandemic.
Bally’s said that the layoffs would come at the cost of around $10m to $15m in severance packages, set to impact the firm’s first quarter results for 2023. However, Fenton affirmed that it will prove worth it in the long run. “We’ve reflected hard as a business to come to this conclusion,” he said in Thursday’s letter. “We need to manage our cost base appropriately.”