NetEnt lays off 55 employees.
NetEnt, a Swedish gaming and platform developer, has divulged insights into its restructuring, initially reported in October. This restructuring is estimated to cost around €2.4 million. As part of this, 55 administrative positions within their Stockholm office will be terminated, allowing more resources to be diverted towards game development.
In the past, NetEnt had unveiled moderate growth during that same month and attributed the reorganization mentioned in their financial report to accelerate this growth.
Additionally, NetEnt AB presented more detailed information on its restructuring that was first unveiled during the last quarter. This will ultimately result in 55 full-time employees being laid off, mainly from administrative roles in their Stockholm headquarters. For the reorganization, the company will need to incur a one-time cost of SEK 250 million (equal to €2.4 million), which will be recorded in the last quarter of 2018. Around 20% of this total pertains to write-offs on intangible assets associated with a virtual reality project. The firm is currently working on creating virtual casinos. The restructuring is scheduled to be completed this year, with the CEO Therese Hillman asserting that it will lead to a greater allocation of resources to game creation.
Hillman stated, "By decentralizing our operations, we're moving closer to a transformed NetEnt that's more centered on customers and players. The new structure will have clearer roles and a stronger focus on value creation. We're delighted with the success of our game releases in this quarter and are committed to expanding our game portfolio. Our strategy is to condense release intervals and anticipate launching between 30 and 35 new games in the next year."
Restructuring was previously announced in October
The upcoming changes had already been disclosed by the leadership in October of this year. The publication of the final quarter's results included a corresponding announcement from Group CEO Therese Hillman.
In her statement, Hillman shared, "The third quarter was marked by a strong start due to the launch of Jumanji. We're still working on reducing fixed costs and improving the organization's efficiency. There are still areas where I think we can enhance performance for next year."
1996: NetEnt's founding in Stockholm
NetEnt can trace its roots back to 1996, when it started in Stockholm with just three employees and a single customer. In 2000, the company faced significant challenges and was almost sold by its founder, Pontus Lundwall. It made a comeback after launching its own online casinos around the turn of the millennium. Now listed on the stock exchange since 2007, NetEnt AB holds a market capitalization of around €2.2 billion. With over 170 clients, the company's services can be found in the portfolios of nearly 1,000 people. It operates in partnership with its subsidiaries in eight different locations: Stockholm, Malta, Kiev, Kraków, Gothenburg, Gibraltar, and New Jersey.
Although the company has gained a substantial share (approximately 28%) in the European market, it's now turning its attention to North America. NetEnt has now abandoned its casino business and now solely focuses on creating games and software applications for integration. Their products are distributed to customers under a licensing model, allowing both parties to share revenue from games in NetEnt casinos. NetEnt takes on all hosting responsibilities - providing the technical infrastructure of the games on their servers. The suite of products includes various types of slot machines, live dealer games, and table games, such as video poker. Some of its most famous titles are Gonzo's Quest, Starburst, and Reel Rush. For a comprehensive understanding of the firm, please refer to their most recent interim report.
Read also:
- Leverkusen claims victory in the cup, securing a double triumph.
- Alonso achieves a double victory after consuming a German brew.
- Does the SVolt factory in Saarland face stability issues?
- Furor surrounding Sylt scandal footage