800 G-Tech redundancies halt Euro expansion drive

US lottery giant G-Tech has abandoned its plans to create a European marketing division after announcing a worldwide restructuring package which has left 800 people redundant.

Ralph-Jurgen Bandmann was appointed to the position of European marketing director last autumn but left the company last month, together with a marketing manager and administrative assistant.

Bandmann was to form the basis of the European division within the UK division based at Watford.

A source within the company says the restructuring overhaul means there are no definite plans for a separate European marketing division at present and marketing may well be incorporated into other people’s roles.

“The worldwide restructuring operation eliminates the middle-management layer so we can get closer to the customers,” says G-Tech vice-president of corporate affairs, Robert Rendine. The company employs 5,500 people – 800 will be made redundant within the year.

G-Tech’s membership of the Camelot National Lottery operating consortium has been dogged by controversy. G-Tech chairman Guy Snowden left the company after losing a libel action alleging bribery.

Last week, G-Tech gave evidence to Oflot director general John Stoker amid more bribery allegations. A spokeswoman for Camelot says a decision on whether G-Tech should be allowed to continue as part of Camelot is expected from Oflot next week.

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