Star Group is cutting a number of employees in the Isle of Man. The decision was made following the operational difficulty that the PokerStars are experiencing in some of the international markets.
The number of people who will lose jobs is yet to be confirmed, but the group currently employs 400 staff on the island. In a statement, the group operator insisted that the Isle of Man will remain a critical hub. They added that most of the challenges they are getting arises from the key international market being disrupted.
The group now seek to pursue operational initiatives which cost-optimize opportunities, assessing their fixed cost base and also realign their cost with a global growth strategy. They added that the proposed headcount reduction in the Isle of Man is one of the components of their mid-term plan to target sustainable growth.
PokerStars moved into the Isle of Man in 2005, they set their headquarters in Douglas Bay Complex and later in 2012, bought the building. At the start, they had five employees; the number has grown to the current 400, which is equivalent to a fifth of their global headcount.
The group shows an 11.7 percent decrease in profit in the second quarter of 2019. The group associates the decline to changes in regulation in Russia and Switzerland. The group is also affected by the acquisition of Sky Betting & Gaming in the UK and BetEasy in Australia.
The group operator also associated the decrease of poker revenue to adverse foreign exchange fluctuations and disruption by regulatory laws which has led to reduced deposit by customers.