NetEnt to cut 55 jobs in company restructure
Majority of cuts to affect Stockholm-based staff at corporate support level
NetEnt will cut 55 full-time positions this month as the online casino supplier follows through on a restructure to reduce staff costs and increase games production.
The December reorganisation will result in significant job losses in Stockholm, predominantly at corporate support level, and is likely to accrue non-recurring costs of around SEK25m (£2.2m).
The costs will be added to the balance sheet in Q4 2018, including a SEK5m (£440k) write-down of intangible assets on a virtual reality (VR) development project.
Cost savings from the employee restructure will be reallocated to spark an increase in games production, according to NetEnt CEO Therese Hillman.
NetEnt CEO Therese Hillman
“By decentralising our operations we take another step towards a new NetEnt, where customers and players are in focus,” said Hillman.
“The new organisation will have clearer responsibilities and more emphasis on value-creating initiatives.
“We are pleased to see the performance of our new game releases so far in the fourth quarter as we continue to diversify our game portfolio.
“Going forwards, we increase the pace of output and expect to release between 30 and 35 new games in 2019,” she added.
NetEnt reported Q3 revenues of SEK 449.3m (£38m), an 11% uptick in real terms but up just 1.8% in constant currency, continuing a period of sluggish growth.
“We continue to make efforts to lower overhead costs and to optimize the organization for commercial drive,” Hillman said at the time.
NetEnt also this morning announced the launch of a virtual casino product for Global Gaming’s flagship Ninja Casino brand.
NetEnt CPO Henrik Fagerlund said: “Our ground-breaking exclusive virtual casinos have breathed new life into the live casino experience.
“They take the offering to a new level and allow operators to maximize results by having significant input into the design and build of the product.”