The move is expected to save the company €6 million on an annualised basis
Bragg Gaming Group is laying off 19 per cent of its global workforce in a bid to become cash generative.
The company said in a statement Thursday that the workforce reduction will improve its cost structure, sharpen its strategic focus, and accelerate its path to becoming a sustainable cash-generative business.
The layoffs are expected to save the company €6 million annually once full implemented, adding to the approximately €4.5 million in annualized cash savings anticipated in connection with the company’s previously announced strategic restructuring.
Bragg expects to incur termination costs of approximately €0.6 million in the second half of this year.
“We believe that the steps we took at the start of the year were the right ones for the business, and today we are going further,” said Bragg Gaming chief executive Matevž Mazij. “These measures are designed to deliver focus, discipline, execution and cash generation. By combining a more focused organization with the acceleration of our AI-First transformation, we are structurally improving our costs while continuing to protect the technology, content and people that drive our competitive advantage.
Mazij added: “The measures announced today build directly on the restructuring we announced in January and move us decisively toward sustained cash generation — leaving Bragg leaner, sharper and well positioned for growth and the market consolidation opportunities we see ahead as the industry further regulates. I want to sincerely thank the colleagues who are leaving Bragg for their dedication and contribution.”
Shares in Bragg Gaming Group (TSX:BRAG) closed 2.33 per cent higher at CA$2.63 per share in Toronto Wednesday.