The Victoria Racing Club has slashed jobs as it begins to tackle its dire financial situation.

It is thought close to 40 positions have been made redundant as new VRC chief executive Kylie Rogers (the former AFL executive and customer and commercial manager) begins a restructure.

Job losses had been forecast for weeks but they hit home on Tuesday.

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Seven commentator and horse racing expert Jason Richardson was gutted by the news when word came out.

“So sad to hear the news of major redundancies at VRC,” Richardson said on social media.

“We have unfortunately lost some great people to the club and the wider racing industry.

“(Love) to my friends and colleagues.”

Racing fans have been mystified by the financial predicament of the VRC, with some suggesting the organisation had been “reckless” in its spending for years.

Others were in shock by the timing of the news.

“That’s sad. Especially so close to Christmas,” one fan said.

The news follows the release of the VRC’s annual financial report, where it was revealed the business had suffered a $24.2 million loss for the financial year.

That result followed on from the previous loss of $14.9 million. In fact, over the past four years, the VRC has posted a combined loss of $70 million since splurging on a $128 million grandstand that opened in 2018.

The VRC has also borrowed $75 million from the ANZ bank, has invested in capital works projects around Flemington (from $7.3m to $11.1m in the last financial year), has been stung by climbing interest rates (up 49 per cent), while facing a fall in industry distributions and wagering revenue.

The VRC did see a leap in memberships (hitting a record total of 34,240), but expenses have also soared from $3.6m to $222.2m.

It’s a nightmare scenario for Rogers.

In statement to 7NEWS.com.au, the Victoria Racing Club said it had not been “immune to rising costs across the supply chain required to deliver more than 20 Flemington race days including the four days of the Melbourne Cup Carnival”.

“While the 2024 Melbourne Cup Carnival saw increased crowds and viewing audiences, the VRC conducts regular reviews of its cost base to ensure we have the right long-term strategy and operating plan in place to deliver future growth,” the statement said.

The exact number of redundancies was not confirmed.

The Melbourne Cup Carnival delivered crowds of more than 90,000 to the actual Cup and over 80,000 to the Victoria Derby.

And the VRC believes it can turn things around.

“The club maintains a positive outlook for the future, which is supported by the recently executed media rights and sponsorship agreement commencing for the 2024 Melbourne Cup Carnival,” the report said.

“Due to timing of contracted revenues and increased delivery costs associated with the initial period of the agreement, the club expects to see significant uplift from this activity in FY26 and beyond.”