Kindred Group has announced that it will be fully exiting the North American market by the end of the second quarter of 2024, subject to the regulatory process, as well as reducing its employees and consultants headcount by over 300.
The cost reduction actions come as part of the company’s strategic review, which was initiated earlier this year on April 26, and is expected to result in annual savings of approximately £40m.
Nils Andén, who has been Interim CEO of Kindred Group since former chief Henrik Tjärnström resigned in May, has called the cost reduction actions both “necessary and decisive”.
To begin immediately, Kindred noted that the exit from North America and the reallocation of resources and finances to existing core markets will help the company capitalise on potential and market share in those regions and initiate growth initiatives.
These plans include additional extensions of hyper local casino brands, a re-allocation of marketing investments, tech resources, and strategic projects with convincing growth opportunities, as well as continued product differentiation through exclusive content.
In addition, Kindred has stated it intends to have a “leaner and more efficient organisation focused on selective growth initiatives”, so it will be reducing the number of employees and consultants it has throughout 2024 by over 300.
Commenting on the North American exit and the employee reductions, Andén said: “The cost reduction actions announced today are both necessary and decisive.
“While it is never a desire to inform valued colleagues of redundancies, this puts us in a stronger position to secure long-term growth for Kindred across our locally regulated core markets.
“We can now focus our resources and tech capacity towards strategic initiatives and selected markets where we see clear potential to grow our market share.”