Bragg to reduce 12% of global work force

Executive Summary

• Bragg Gaming Group announced a strategic restructuring involving a 12% reduction in its global workforce to realign the organization, improve cost structure, and drive EBITDA growth.
• The company expects to incur approximately €1.0 million in restructuring costs in Q1 2026, with anticipated annualized cash savings of approximately €4.5 million.
• The restructuring is part of a broader AI transformation plan targeting an "AI-first" company by 2027, with goals for AI-enhanced products in over 90% of launches and AI impact on over 75% of operational workflows.

Key Details

• Workforce Reduction: Approximately 12% of the global workforce will be reduced.
• Financial Impact:
  • Restructuring costs: Approximately €1.0 million, associated with personnel-related termination costs in Q1 2026.
  • Expected annualized cash savings: Approximately €4.5 million from staff reductions and other restructuring efforts.
  • Note: Savings do not include the positive impact of the recently announced AI initiative for cost efficiencies.
• Strategic AI Goals (Targeting 2027):
  • Become an "AI-first" company.
  • Ensure an AI-enhanced product becomes standard in over 90% of all product launches.
  • Have more than three-quarters (75%+) of Bragg's operational workflows impacted by AI.
• Strategic Rationale:
  • Address complex regulatory compliance requirements and recent tax headwinds.
  • Focus on short-term profitability and maintaining cash runway.
  • Position the company for organic growth and market consolidation opportunities.
  • CEO Matevz Mazij stated the company believes it is currently undervalued by the market and that improving cash profitability will address this.
• Future Reporting: The company plans to provide further insight into its new operating model and 2026 strategic initiatives when announcing preliminary unaudited results for the year ended Dec. 31, 2025.

Notable Quotes

• "We believe that we are in the enviable position of having great technologies, assets, people and future prospects... 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." — Matevz Mazij, CEO
• "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." — Matevz Mazij, CEO