Bragg Gaming Group has confirmed plans to cut approximately 12% of its global workforce as part of a broader restructuring programme aimed at improving profitability and strengthening its cost base.
The company said the reorganisation is intended to realign its operating model, reduce expenses, and accelerate progress toward sustained net profitability. Bragg expects the workforce reduction to result in one-off costs of around €1 million during the first quarter of 2026, while contributing to total annualised savings of approximately €4.5 million when combined with other restructuring measures.
Management frames cuts as strategic reset
Chief executive Matevz Mazij said the decision reflects the need to respond to mounting pressures across Bragg’s operating markets, including increasingly complex regulatory compliance requirements and tax headwinds in several key jurisdictions.
At the same time, Mazij highlighted what he described as improving fundamentals, pointing to emerging market opportunities and a sharper focus on near-term cash profitability. He said Bragg believes it is currently undervalued by the market and that stronger cash performance could help close that gap while positioning the company for future consolidation activity.
According to Mazij, the restructuring follows a period of targeted hiring in 2024 and 2025 and represents the final step needed to extend Bragg’s cash runway and improve EBITDA performance.
Financial pressure remains evident
The announcement follows a challenging set of financial results for Bragg. In the third quarter of 2025, the company reported a net loss of €3 million for the three months to 30 September, up from €1.2 million in the same period a year earlier. Higher operating and revenue costs pushed operating loss to €1.2 million, compared with €402,000 in Q3 2024.
For the first nine months of 2025, revenue rose 4.8% year-on-year, while gross profit increased 11.5% to €42.7 million. However, operating expenses continued to outpace revenue growth, resulting in an operating loss of €5.2 million, up from €2.9 million the previous year. Net loss after tax more than doubled to €11.6 million.
Bragg said further detail on its revised operating structure and strategic priorities for 2026 will be provided alongside its full-year 2025 results.
AI strategy positioned as next lever
In outlining the restructuring, Bragg noted that its cost-saving estimates do not yet account for the expected impact of its recently announced artificial intelligence initiative. In January 2026, the company entered a strategic partnership with Golden Whale Productions, under which it will integrate advanced machine learning models into its player account management and predictive intelligence tools.
Bragg has set a target of becoming an AI-first organisation by 2027, with more than 90% of new product launches expected to feature AI-enhanced functionality by next year. The company also aims for AI to influence roughly three-quarters of its internal operational workflows.
What it means for the market
For Bragg, the restructuring underlines the financial strain facing mid-tier iGaming suppliers as regulatory complexity and taxation increase across multiple markets. Cutting headcount is a clear signal that the company is prioritising cash preservation and operational efficiency over near-term expansion.
For operators and partners, the move suggests a more focused Bragg, with investment concentrated on scalable technologies such as AI-driven player management rather than broad-based growth. If successful, this could improve product performance and margins, but it also raises questions about execution risk during the transition.
More broadly, the announcement reflects a wider trend across the iGaming supply chain, where consolidation, automation, and cost discipline are becoming central themes. Bragg’s ability to stabilise profitability while delivering on its AI ambitions will likely influence how the market values similar technology-led suppliers over the next 12 to 24 months.