NetEnt is cutting jobs to prepare itself for the development of further gaming products. The move will see as many as 55 people go while the company is expected to save up to SEK20 million every year.
NetEnt Is Streamlining the Offer
NetEnt is about to re-focus its efforts on new game development. The iGaming sector has become increasingly competitive and every new title that hits the market needs to be up to the required standard. That often means alternative gameplay, real video game elements and understandably – costs.
As a result, the Swedish-based company is dropping 55 jobs in Stockholm, hoping to save up to SEK20 million and build a momentum for the company next year, bringing yet more award-winning titles. NetEnt is known for a number of blockbuster video slots, including, but not limited to Starburst, Gonzo’s Quest, and Jumanji.
NetEnt understood the gravity of the decision, but it also highlighted the potential benefits that would spur growth and help the company expand.
By decentralizing our operations we take another step towards a new NetEnt, where customers and players are in focus. The new organization will have clearer responsibilities and more emphasis on value-creating initiatives. – NetEnt CEO There Hillman
The move will aim to bolster the game development segment of the company, which is preparing to push out as many as 3 new titles a month in 2019, though this number isn’t carved in stone.
A Look at the Company
Presently, NetEnt has 1,002 employees across six countries, with 415 people working in Stockholm alone. The decision to let employees go was first suggested during the quarterly report meeting, with operating costs growing to SEK227.2 million year-over-year, occasioned by more staff in the live dealer segment and a general depreciation of the segment.
Even though operating profit kept steady, jumping 11% since the same period a year before, NetEnt is still determined to push ahead with the move. According to Henrik Fagerlund, CPO at NetEnt, the company’s success as a game developer and supplier is the relative simplicity of the integration process, which allows many clients to access the full offer without unnecessary hassle.
While optimization at home is afoot, NetEnt has been determined to expand with new licenses. At the end of November, the company announced a freshly-minted partnership with Mr Green in a bid to expand on the Danish market. The company also entered into a media buying services partnership earlier this year.
It’s a first for the Swedish developer and NetEnt will finally be breaking into one of the safest European markets. The legalization of online casinos at home is also a new opportunity for the developer, which will see itself in a land full of casinos eager to provide unique experiences come January 1, 2019.
NetEnt has recently released the Viking video slot game, based on the popular TV franchise. A highly-polished product itself, Vikings is a perfect example of the studio’s development capabilities.
Letting go 55 people seems as a tough choice, but one that executives consider necessary to push into 2019 with new titles that would ultimately grow the company’s client portfolio.