After Catena Media confirmed further layoffs in the first quarter, Imogen Goodman delved into the real reasons behind the massive layoffs in Gibraltar and Malta, two industry hubs.
iGaming Industry Layoff Wave
In early May, the iGaming NEXT conference held in Valletta was particularly lively, with long queues forming in front of the TalentBet recruitment agency's booth. However, these people were not corporate clients, but a large number of practitioners forced to look for new jobs due to layoffs.
"We received many job seekers, some of whom came from S-Tech, who said they had just been laid off," said Senette Lam, CEO of the recruitment company based in Malta. These people are experienced and have excellent backgrounds, yet they were pushed into the fiercely competitive local job market in a short time.
Similar trends can be seen on LinkedIn: various "open for job" slogans and posts looking for new opportunities abound. Although layoffs have been common since the pandemic, industry recruitment experts point out that the recent layoffs have intensified.
Jennifer Innes, CEO of the UK recruitment agency BettingJobs, said bluntly: "There are layoffs across the entire industry, no longer limited to a specific market." Since the COVID-19 pandemic, the number of job seekers needing to polish their resumes has continued to rise.
Transformation of Offshore Centers
Malta and Gibraltar, two traditional offshore iGaming strongholds, are at the forefront of this wave of change. For these small jurisdictions, several rounds of layoffs are enough to disrupt the local employment ecosystem.
The wide impact of layoffs is shocking—from operators to suppliers, and then to affiliated companies. Most notably, Catena Media announced a new round of layoffs due to poor financial performance in the first quarter of this year.
After streamlining 29 content and marketing positions in November last year, the company will cut about 50 positions this year. At that time, CEO Manuel Stan had claimed to "avoid" further layoffs, but a 40% profit decline prompted an adjustment.
Catena is not an isolated case: in March last year, Gibraltar's Gambling Commissioner Andrew Lyman admitted that several local big names such as William Hill, Entain, and Lottoland had undergone layoffs.
Is the Center Shifting?
Although Lyman said at the time that these employees usually quickly find new jobs, recruitment professionals believe it's not that simple.
"Malta and Gibraltar have always been industry strongholds, but their importance is declining," Innes analyzed.
She mentioned that emerging markets such as Bulgaria, Prague, Poland, and even Cyprus are rising rapidly. The war in Ukraine, causing some technical talents to flow out, is also shaking the status of traditional strongholds.
Due to market restructuring, many iGaming positions are no longer concentrated in a few central areas, putting employees who rely on specific jurisdictions in an even more uncertain situation.
Deeper Causes of the Layoff Wave
Although news of layoffs and budget cuts may be worrying, it does not necessarily mean that the industry is in decline. Many industry insiders believe that this is a part of the natural market correction after the pandemic.
Bally CEO Lee Fenton pointed out this "bubble period" phenomenon as early as the 2023 financial report conference call. He admitted: "We expanded crazily during the pandemic, and now we realize that we hired too many in some areas, and I am responsible for this."
Lam also stated that some companies in Malta hired aggressively during the high growth phase, only to find an excess of human resources after stabilization. "It's not that the positions are gone, but that the positions don't need that many people."
Innes further pointed out: "During the pandemic, the number of users surged, but the time lag for users to leave the platform means that the impact is only now beginning to manifest at the operator and supplier level."
And once this impact appears, layoffs follow.
Consolidation and Efficiency Also Drive Layoffs
Industry consolidation is another major driver of layoffs. After mergers and acquisitions, large companies usually reorganize processes, optimize structures, and reduce overlapping positions.
888 continuously laid off employees after acquiring William Hill's non-US assets for 2.2 billion pounds in 2022. At the same time, Malta's Hero Gaming also laid off employees in 2023 to prepare for an acquisition.
There were also rumors of layoffs at Entain's office in Gibraltar, as the company strives to revive its UK products through restructuring.
Regulatory Challenges and Technological Substitution
In addition to traditional reasons, structural changes within the industry also bring layoff pressures.
Emerging gambling centers like the UAE are increasingly attractive, and some businesses choose to withdraw from traditional hubs and invest costs in more potential markets.
Moreover, regulatory changes are key. Emerging markets like Brazil and the Netherlands require operators to set positions locally, further forcing companies to reconfigure human resources.
At the same time, new technologies are changing the industry landscape. AI, long regarded as hype, is now truly shaking the job market.
"Recently, we've seen several companies replace certain positions with AI," Innes pointed out. Especially junior positions in customer service, such as anti-fraud and payment communication, have become major areas replaced by AI.
Although the current impact is mainly concentrated on basic positions, under the pressure of saving costs and improving efficiency, AI automation will continue to exert force in the future.
However, AI also brings not just layoffs. Some emerging positions have also arisen, such as project managers and other roles assisting in AI deployment.
"The current wave of layoffs seems to be slowly improving," Innes said, "but it will still take some time to truly stabilize in the future."
Paths After Layoffs
In Malta, an economically active country, Lam from TalentBet believes that layoffs are just a temporary setback for most iGaming practitioners. Outstanding talents are usually quickly absorbed by new companies.
"I've been in recruitment for over ten years, and this industry has always been growing, never stagnant," she said. "As long as you have experience, there will always be a demand for talent."
Even in a downturn, Lam says, most candidates can rejoin within a month. Entry-level positions might be found in a few days, while senior positions take longer.
Innes also pointed out that the situation for iGaming talents is not as difficult as it seems.
"If you only look at those posts on LinkedIn complaining about not finding jobs, you might mistakenly think that this industry no longer has vitality," she said. "But the reality is, as long as you have experience, there are always opportunities."
However, she also acknowledged differences between the two jurisdictions. This year, BettingJobs has seen an increase in placements in Malta, while Gibraltar had none in the first quarter.
She believes this is related to the predicaments faced by Gibraltar's tier-one operators, especially the impact of Brexit.
"We indeed see layoffs in both areas, but the impact in Gibraltar is heavier," she concluded.
Reshaping Career Paths
Being laid off is anxiety-inducing, but many also use this as an opportunity to reevaluate their career direction.
Some choose to learn new skills, while others start to seriously consider their ideal work and lifestyle. Lam predicts that by 2025, many iGaming practitioners will prioritize remote work opportunities.
Currently, of the more than 80 companies served by TalentBet, the vast majority offer remote or hybrid work modes. Only a few still insist on full-time attendance.
However, as some companies return to office work, the demand for remote work has become a recruitment obstacle.
"We haven't seen too many desperate job seekers," Lam said, "Instead, those who are laid off are more selective because they see an opportunity to replan."
For companies that insist on offline work, finding suitable candidates is becoming more difficult.
"We'll say it straight, 'If you insist on must-attend, you might miss the best talent,'" Lam added, "For example, someone is outstanding, but he just wants flexible hours."
Even so, Innes says that job seekers are generally pragmatic when evaluating opportunities—they know they can't expect the high salaries and benefits of the past and are willing to accept more flexible offers.
Seizing Opportunities for Change
For those still job hunting, Innes advises maintaining a flexible mindset, broadening horizons, and exploring positions where skills are transferable.
"Optimize your resume, seek professional advice if necessary," she said, "But no matter how difficult, the key is not to lose heart."
She concluded: "This industry is still full of vitality and opportunities. Although there has been a wave of layoffs, as new technologies and new centers rise, as long as you are willing to adapt to changes, the iGaming industry will eventually reward your investment."
