BCLC reduces costs company-wide and positions company for future growth04/04/2014
BCLC has reduced operating expenditures in order to position the corporation to sustain current net income and deliver maximum value for British Columbians into the future.
The gaming industry across Canada is maturing. Existing demand for gambling is increasingly being met by the industry and demographics are shifting. At the same time, BCLC’s operating costs have risen due to increasing compliance commitments and the need to invest in replacing aging technology.
“BCLC has been a successful organization for many years; however, we have a systemic issue that all gaming jurisdictions are facing and that is a mature marketplace with rising operating costs and marginal revenue growth,” said interim President & CEO, Jim Lightbody. “We are going through the process to ensure we’re properly focused on our business priorities, operating efficiently and set up for growth in the long term.”
BCLC will reduce operating costs by about $20 million, which includes a 23 per cent reduction in advertising and marketing, reductions in contractor expenses, program savings and the elimination of fleet vehicles. BCLC has also reprioritized capital projects to reduce capital costs by $20 million.
The re-alignment of the operating budget and programs also resulted in workforce reductions. In total across the corporation, BCLC eliminated 67 positions: 29 in the Kamloops office, 33 in the Vancouver office and five from field staff who work throughout the province.
Wherever possible, roles were eliminated through attrition and voluntary termination.
“These kinds of decisions are difficult for any business, but they are the right decisions to best position BCLC to continue delivering strong net income to benefit British Columbians,” continued Lightbody.
BCLC’s workforce operates throughout the province. Almost half of BCLC’s staff is located in the Kamloops office; about a third in Vancouver and the remainder are in field services supporting operations across the province. BCLC’s net income of more than $1 billion each year is used by the Province of British Columbia to benefit people and communities across B.C.