NetEnt’s reorganisation will help the company to increase profitability and competitiveness
When companies grow as fast as NetEnt did since its establishment in 1996, it’s expected that at one point a reorganization is going to happen. In the third quarter of 2018, more than 1000 people are spread over 6 different countries and with a new CEO appointed in May 2018, a reorganization doesn’t come as a surprise. During December, 55 full-time positions will be terminated in an attempt to optimize the company’s operations while the company will be saving SEK 25 million (€2.4 million) as well.
Some NetEnt facts
While it was in 1996 that NetEnt was founded, the history of NetEnt goes all the way back to 1963 when AB Restaurang Rouletter was founded by Bill Lindwall and Rolf Lundström.
In 1968, a partnership was established with AB Roulett konsult & Spelautomater, founded by Per Hamberg and Lars Kling.
In 1972 the name Cherry was registered and after a couple of eventful decades, Bill Lindwall’s son, Pontus Lindwall, founded NetEnt in 1996.
Reading the full NetEnt history, you’ll find out that the company managed to become a true pioneer when online gaming started to take off in the mid-1990s and the first online casino was launched in 2000.
In 2007 the company was spun off and listed on NGM Equity and in 2009 NetEnt moved to the main list of the Stockholm Stock Exchange.
By 2018, the company has created 200 thrilling games and is delivering its wide range of NetEnt Games to over 200 of the world’s most prominent online casinos.
Right now, more than 1000 employees from 47 different nationalities are working from offices in Sweden, Malta, Ukraine, Gibraltar, USA and Poland, but unfortunately some of will leave the NetEnt stage during December.
I personally don’t think December is the best time for a reorganization, creating a bitter taste with Christmas and NYE coming up, but what needs to be done, needs to be done I guess.
The company streamlining and restructuring the organization will lead to staff reductions in the Stockholm office. The restructuring of NetEnt will affect 55 full-time positions of which most are within corporate support functions. The changes are taking place during December and will lead to a reallocation of resources to increased game production.
The reorganization is expected to result in non-recurring costs of approximately SEK 25 million (€2.4 million) which will be booked in the fourth quarter of 2018. Of these costs, SEK 5 million (€483.000) relate to a write-down of intangible assets regarding a development project in the Virtual Reality area.
Therese Hillman, Group CEO of NetEnt, comments: “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. We are pleased to see the performance of our new game releases so far in the fourth quarter as we continue to diversify our game portfolio. Going forward, we increase the pace of output and expect to release 30 – 35 new games in 2019.”