Recently, the well-known technology provider in the iGaming industry, Bragg Gaming Group, announced a significant adjustment, planning to lay off about 12% of its workforce globally. The company's head, Matevz Mazij, candidly stated that this strategic restructuring is the "final step" for the company to achieve sustained net profits and seize market integration opportunities. Although the layoffs are expected to incur about 1 million euros in costs in the first quarter, they will contribute to a total annual savings of 4.5 million euros along with other restructuring measures.
A bold move: layoffs and restructuring pave the way for profitability
Bragg's decision is not without reason. According to its latest financial report, the company faces significant profit pressures: in the third quarter ending September 30, 2025, the net loss increased from 1.2 million euros in the same period last year to 3 million euros. Despite growth in revenue and gross profit in the first nine months, operating expenses grew faster than income, leading to significant increases in operating losses and net losses after taxes. Against this backdrop, layoffs and restructuring have become urgent choices for optimizing cost structures and accelerating EBITDA (earnings before interest, taxes, depreciation, and amortization) growth and cash profitability. Mazij believes that the market underestimates Bragg's real value, and improving cash flow profitability will be key to changing this perception.
Deep-seated motives: regulatory, tax, and market challenges
Mazij attributes the necessity of restructuring to severe challenges faced by the company in multiple operating markets, mainly including:
•Complex regulatory compliance requirements: Increasingly strict regulatory policies worldwide have increased operating costs and difficulties.
•Adverse tax conditions in key regions: Changes in tax policies in some major markets have directly pressured profits.
However, he also sees positive signs, such as opportunities in emerging markets and the company's increasing focus on short-term profitability. This restructuring is precisely to consolidate existing advantages in order to better seize opportunities for organic growth and market integration.
Future bets: All in AI and the 2027 vision
More forward-looking, Bragg has clearly placed its future bets on artificial intelligence (AI). The company stated that this restructuring plan does not even include the expected positive impact of its recently announced AI initiatives. In early January 2026, Bragg entered into a strategic collaboration with data science experts Golden Whale Productions to enhance its player account management platform's predictive intelligence capabilities using the latter's machine learning and proprietary AI models.
Bragg ambitiously announced its "AI-first" roadmap: the goal is to become an AI-driven company by 2027. Specifically, the company plans by next year to make AI-enhanced products the standard configuration for over 90% of new products released, while allowing AI technology to influence three-quarters of its operational workflows. Mazij emphasized that promoting the application of AI technology will create opportunities for cost reduction and efficiency enhancement, comprehensively improving business operational leverage. The company will provide further details on its new operating model and strategic initiatives for 2026 when it releases its financial results for the fiscal year 2025. Follow the PASA official website for more in-depth analysis of the iGaming industry.
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This article is from "PASA-Global iGaming Leaders," a gambling industry news channel:https://t.me/pasa_news
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