Churchill Downs Inc. will terminate about 60 employees because of what it calls “redundancies” in its online betting operations.
CDI closed on the purchase of the Youbet.com advance deposit wagering system earlier this year. It already has its own ADW system called TwinSpires.com.
In a report with the United States Securities and Exchange Commission, CDI said 36 employees were given notice Sept. 28-29 that their employment would be terminated Dec. 3. Another 23 were told their jobs will be gone between Dec. 31 and Jan. 31, 2011, while five were informed their employ “likely” will be terminated three to 12 months after Dec. 31.
“Certain of these employees have already received or may yet receive offers to relocate to another division of the company at one of the company’s other facilities,” CDI said in the SEC filing.
“These employee separations were prompted by the identification of redundancies in the company’s online business as a result of the company’s merger with Youbet.com, which was completed on June 2, and this action is one of the company’s undertakings to achieve the $12 million in anticipated annualized cost synergies in connection with the company’s acquisition and integration of Youbet.com, as previously disclosed,” the statement said.
CDI said it will pay $1.1 million to $1.2 million in severance and other benefits in connection with the terminations.