NetEnt cuts over 50 jobs as preparations begin for increased development period

Sweden, NETENT, business
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NetEnt has announced it will reduce its Swedish workforce by 55 staff members, in a bid to focus on increased game development in the new year.

The casino games supplier will dedicate $2.2m to funding the redundancies, with most job cuts to be made from corporate support divisions at the firm’s Stockholm headquarters.

“By decentralizing our operations we take another step towards a new NetEnt, where customers and players are in focus,” said CEO Therese Hillman.

“The new organization will have clearer responsibilities and more emphasis on value-creating initiatives.”

The announcement follows the October statement by new CEO Hillman that the firm would “continue to make efforts to lower overhead costs and to optimise the organisation for commercial drive and increased pace of output.”

Operating expenses for Q318 totalled $31m, an 11 percent increase on the prior year period, attributed to higher staffing costs on the Live Casino platform and general depreciation.

Though profit for the period rose 11 percent for the quarter to $19.2m, NetEnt confirmed its intention for 2019 is to increase production to 35 new titles, with more company resources now allocated to game development.

The staffing reduction comes just ahead of the release of NetEnt’s latest VR project, Ninja Casino Live, a partnership with the no-registration operator owned by Global Gaming.

“Our groundbreaking exclusive virtual casinos have breathed new life into the live casino experience,” said NetEnt CPO Henrik Fagerlund.

“They take the offering to a new level and allow operators to maximize results.”

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