Bragg Gaming has announced a strategic restructuring to improve its overall cost structure, including a reduction of around 12 per cent of its global workforce.
The company said that the restructuring has been designed to realign the organization and drive its EBITDA growth, as well as shorten the time required to achieve sustained net profitability.
Following the restructuring, Bragg will reduce approximately 12 per cent of its global workforce, incurring €1.0 million of personnel-related termination costs in the first quarter of 2026.
Expected annualized cash savings from the staff reductions and other restructuring efforts will be approximately €4.5 million.
Bragg said that this amount does not include the expected positive impact of its recently announced initiative to utilize artificial intelligence (AI) to drive cost efficiencies and improve operational excellence.
The core of Bragg’s strategic overhaul centers on an ambitious AI transformation plan, targeting an AI-first company by 2027.
“We believe that we are in the enviable position of having great technologies, assets, people, and future prospects,” said Bragg CEO Matevz Mazij. ”Nevertheless, given the increasingly complex regulatory compliance requirements, recent tax headwinds across key regions, emerging market opportunities, consolidation in the market and our increased focus on short-term profitability, we needed to take this step now of restructuring the company’s staffing.
“After securing key hires in 2024 and 2025, we believe aggressive operating expense reductions and organizational realignment are the final steps to maintain our cash runway, drive EBITDA growth and achieve cash profitability.
“Our strategic restructuring is designed to capitalize on our strong foundation and position us extremely well for organic growth and concurrent market consolidation opportunities. We also believe that the company is currently undervalued by the market and that improving our cash profitability will help address this issue while also making us stronger in meeting consolidation opportunities as they arise.”
Bragg added that the restructuring will prepare the company for further regulation and consolidation in several global markets, as well as capitalizing on opportunities related to the emergence of Prediction Markets and Historical Racing operators, among others.
The company plans to provide further insight into its new operating model and 2026 strategic initiatives following publication of its preliminary unaudited results for 2025.
Shares in Bragg Gaming Group Inc (TOR:BRAG) were trading at CA$3.00 per share in Toronto earlier Thursday.