Bragg Gaming Group Plans 12% Workforce Cut in Profitability Push

Change is coming quickly for one of the iGaming sector largest technology suppliers. Bragg Gaming Group has outlined a restructuring plan that reshapes its organisation, trims costs, and sharpens focus on near-term profitability.

Good to Know

• Bragg will reduce its global workforce by about 12 percent.
• The restructure targets EBITDA growth and faster net profitability.
• Management points to regulatory pressure and tax headwinds as drivers.

Workforce Reduction Anchors Cost Reset

Bragg Gaming Group confirmed plans to cut approximately 12 percent of its global workforce as part of a broader restructuring effort. The company said the initiative aims to realign internal operations and create a more efficient cost base.

Bragg expects the staff reduction to carry a one-time cost of roughly €1 million during the first quarter of 2026. Management stated that the move, combined with other restructuring actions, should deliver €4.5 million in total annual savings.

According to the company, the changes are designed to support EBITDA growth and shorten the path to sustained net profitability.

Regulatory Pressure and Tax Costs Shape Strategy

The decision follows what Bragg described as mounting challenges across several operating markets. Regulatory compliance requirements have grown more complex, while higher tax burdens in key regions have weighed on margins.

At the same time, Bragg pointed to improving conditions in selected growth markets and a renewed focus on short-term financial performance. Leadership framed the restructuring as a necessary adjustment rather than a retreat.

CEO Calls Business Undervalued

Chief executive officer Matevz Mazij described the changes as the final phase of a longer transition.

“We believe that we are in the enviable position of having great technologies, assets, people and future prospects,” Mazij said. “After securing key hires in 2024 and 2025, we believe aggressive operating expense reductions and organisational realignment are the final steps to maintain our cash runway, drive EBITDA growth and achieve cash profitability.”

Mazij also argued that public market valuation fails to reflect the company underlying strength. He said improved cash profitability should help correct that gap while making Bragg more competitive in consolidation discussions.

“Our strategic restructuring is designed to capitalise on our strong foundation. It will position us extremely well for organic growth and concurrent market consolidation opportunities,” he said.

Financial Results Show Rising Losses

Recent financial disclosures highlight why management opted for sharper cost control. During the third quarter ended September 30, 2025, Bragg reported a net loss of €3 million, widening from €1.2 million in the same quarter a year earlier.

Operating expenses increased faster than revenue, producing an operating loss of €1.2 million, compared with €402,000 in the prior year period.

Looking at the first nine months of 2025, revenue rose 4.8 percent, while gross profit increased 11.5 percent to €42.7 million. Despite that growth, operating costs continued to climb. Operating loss widened to €5.2 million, and net loss after tax more than doubled year over year to €11.6 million.

AI Strategy Sits Outside Current Projections

Bragg noted that the projected savings and financial impact from restructuring do not include any contribution from its recently announced artificial intelligence initiative.

The company said further detail on its revised operating model and strategic priorities will arrive alongside its full-year 2025 financial results, which will also outline objectives for 2026.

FAQ

Why is Bragg Gaming Group reducing its workforce?

The company aims to improve cost structure, grow EBITDA, and reach net profitability faster.

How much will the restructuring save?

Bragg expects total savings of about €4.5 million, with roughly €1 million in upfront costs during Q1 2026.

What challenges did management cite?

Leadership pointed to regulatory complexity and higher tax burdens across several markets.

Does the restructuring include AI initiatives?

No. The projected impact excludes any benefits from the recently announced AI strategy.

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