Kindred Group cuts staff leaving North America and Norway
Kindred Group, the online gaming operator of casinos, poker, bingo and sports betting, announced it would continue to pull out of the North American market, expecting to complete the process by the end of the second quarter of 2024. The company also announced that it would focus on key markets to ensure growth in its operations, as well as cost-effective initiatives including cutting more than 300 employees in 2024.
Withdrawal from North America:
The group expects these activities to result in a loss of $18 million in the North American market in 2022. With losses in 2022, Kindred began pulling out of the business from North America in December 2022, with total gaming revenue of just $5.3 million and remaining 38% below what it achieved in 2021.
Strategic Change:
The ongoing strategic move is the result of a strategic review of the company's operations in April 2023. The exit from North America, which will be completed in 2024, will coincide with cost-cutting activities and organizational restructuring to gain a leading position in key markets and increase revenue levels. To this end, the Group announces a marketing investment in the target market and a reallocation of technical resources and the provision of proprietary content that ensures brand visibility.
Redundancy:
In addition, Kindred's commitment to cost-effectiveness will result in more than 300 employees and consultants being cut across North America and other divisions during 2024. However, the company believes that North American action is needed to strengthen the operations of nine companies within the group. "The cost-cutting measures announced today are both necessary and decisive. While we never want to inform our valued colleagues about redundancy, this puts us in a stronger position to secure Kindred's long-term growth across our locally regulated core markets. Now we can focus our resources and technology capabilities on selected markets with clear potential to grow our strategic initiatives and market share," said Nils Andean, interim CEO of Kindred Group
To withdraw from Norway:
Kindred Group currently exists across a number of U.S. states, including Pennsylvania, New Jersey, Virginia, Arizona, and Washington, as well as Ontario, Canada. At the same time, it is expected to withdraw from Norway by the end of 2023 after a long battle with the Norwegian regulator Lotte Ritilsinet. The company's clash with the regulator results from the regulator ordering Kindred's subsidiary, Trannel, to suspend operations in 2019 and imposing a $1.2 million ($112,500) daily fine on its operators if the subsidiary does not leave.