Veikkaus to cut 400 jobs amid digital push

22 January 2019

Finnish gambling monopoly Veikkaus is set to cut some 400 jobs after revealing plans to end table-gaming activities in restaurants and switch focus to its digital business.

Veikkaus plans to speak with around 1,300 of its 2,000 employees about taking redundancy, with the majority of these based in the Finnish capital of Helsinki.

The company noted that the majority of individuals who are set to lose their jobs are part-time employees.

The job cuts form part of a wider initiative at Veikkaus, whereby the company is also seeking to reorganise its retailer and chain cooperation.

Veikkaus said the move will help to reform its cost structure and boost efficiency across its operations. The company adds that the planned changes will not affect retailers’ point-of-sale network.

Olli Sarekoski, president and CEO of Veikkaus, said: “We want to ensure Veikkaus’ future in the middle of the ever-accelerating digital competition.

“Players are increasingly switching over towards the digital channels and, as a result of the structural changes in retail trade, our point-of-sale network has experienced a drastic decrease over the past few years.

“This is why we are planning to introduce significant changes to our own points of sale, as well as to end the restaurant table gaming activities.”

Closure of the table-gaming business in restaurants forms the latest stage of the company’s plans to focus more on digital activities. In September, the company made a series of changes to its executive team to support this effort.

Veikkaus currently operates 187 game tables in 162 restaurants across Finland, as well as 6,500 retailer points-of-sale and its Veikkaus.fi online gaming domain.

The company said gaming activity among its customer base is moving towards digital, with 42% of turnover now attributable to this part of the business. Its Veikkaus.fi site, which offers around 200 casino games, has 600,000 users every week.