Bragg Gaming Group is pressing ahead with a substantial workforce reduction. Roughly one in five employees will be let go as part of its AI-First transformation strategy. This follows a 12% reduction announced in January, and it underscores the company’s determination to reshape its cost structure ahead of what management believes will be faster profitability.

Substantial Savings Drive Second Round of Cuts

The latest round is expected to deliver approximately EUR 6 million in annual savings, building on the EUR 4.5 million projected from January’s layoffs. That’s a real financial impact for an operator clearly intent on fundamentally restructuring how it operates. The redundancies will occur in the second half of the year, with termination costs estimated at around EUR 600,000.

Chief executive Matevž Mazij framed the cuts as essential to creating a leaner, more efficient operation. He emphasised that the moves would deliver “focus, discipline, execution and cash generation” while maintaining investment in the technology and content that actually drives competitive advantage. It’s a familiar refrain from cost-cutting exercises across the industry, frankly, but the scale here is notable. Within a year, Bragg will have shed roughly 30% of its headcount when both tranches are completed.

Leadership Questions Amid Transformation

The redundancies come against the backdrop of shareholder unrest with Mazij himself. At the company’s latest Annual General Meeting, 55.67% of shareholders voted against his re-election to the board. He remains in his CEO role for now, though his board position is effectively gone pending formal resignation procedures. That’s awkward: the architect of this transformation programme is losing confidence among the people who own the company, even as he executes his vision.

The tension is worth watching. Aggressive cost-cutting paired with leadership instability can create real friction. Whether Bragg’s bet on AI-driven operations pays off will partly depend on retaining the talent and institutional knowledge needed to execute the strategy. Cutting a fifth of your workforce while your CEO faces shareholder rejection is a risky combination.

For now, Bragg is staking its future on becoming leaner and faster. Whether that translates to stronger returns will become clear once the dust settles from these redundancies.