(PRESS RELEASE) -- Bragg Gaming Group, a leading iGaming content and technology provider, announced a strategic restructuring, including staff reductions, designed to realign the organization and thereby improve its overall cost structure, drive its EBITDA growth, and shorten the time required for it to achieve sustained net profitability.
Following the restructuring, Bragg will reduce approximately 12% of its global workforce. The Company expects to incur restructuring costs related to this action of approximately EUR 1.0 million associated with personnel-related termination costs in the first quarter of 2026, and it anticipates annualized cash savings from its staff reductions and other restructuring efforts to be approximately EUR 4.5 million.
Bragg noted this amount does not include the expected positive impact of its recently announced initiative to utilize artificial intelligence 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. The plan is underpinned by clear 2027 targets, including ensuring an AI-Enhanced Product becomes standard in over 90% of all launches and having more than three-quarters of Bragg's operational workflows impacted by AI.
"We believe that we are in the enviable position of having great technologies, assets, people, and future prospects," said Matevž Mazij, Chief Executive Officer at Bragg. "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."
The Company plans to provide further insight into its new operating model and 2026 strategic initiatives when it announces preliminary unaudited results for the year ended 31 December 2025.