As part of its continuous cost-cutting effort, Kindred Group has announced its strategic decision to depart the North American market. This action comes after the group’s April strategic review, which sought to investigate possibilities for a full or partial corporate sale. Subject to regulatory procedures, the anticipated duration of the withdrawal from North America is about six months.
Kindred Group, which presently conducts business in a number of US states, intends to reallocate financial and technological resources in order to bolster its position in its current core markets. By taking this strategic action, the firm hopes to increase its market share and improve its capacity to take advantage of market opportunities. Since September 2019, Kindred’s Unibet brand has operated in Pennsylvania. Initially, the brand launched as a retail sportsbook in collaboration with Mohegan Sun Pocono.
Job Cuts and Cost Reductions
Kindred has announced a staff reduction of over 300 jobs throughout the firm in conjunction with the departure from North America. The group’s attempts to establish a leaner and more efficient structure and simplify operations include the organizational reorganization. It is anticipated that the cost-cutting measures, which include job losses, would save about £40.0 million.
While notifying coworkers of layoffs is never ideal, Kindred’s interim CEO, Nils Andén, stressed the importance of the cost-cutting measures and how they position the business for long-term growth in locally regulated core markets. Resources will be reallocated to support brand expansions and strategic efforts in certain areas.
Kindred’s decision to concentrate on core markets and growth efforts is consistent with its decision to depart the North American market. The organization works in Pennsylvania, New Jersey, Virginia, Arizona, Washington State, and Ontario, Canada, among other states. Kindred’s US market strategy heavily relies on its in-house technology platform, which was introduced in July in Pennsylvania.
As part of the continuing strategic assessment, Kindred’s decision to exit North America was a major step that would help it simplify operations, save money, and fortify its position for long-term development in its key markets.
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