Bragg Gaming Group Cuts 12% of Staff in Pivot to Become ‘AI-First’ by 2027

Bragg Gaming Group, a Toronto-based iGaming technology provider, has announced it will cut approximately 12% of its global workforce as part of a major restructuring plan. The move was confirmed on January 8, 2026, by Gambling News and other industry sources, marking a significant shift in the company’s strategy.

Key Facts

• The Cuts: Approximately 12% of the global workforce, affecting roughly 55 employees based on recent headcount data.
• The Cost: The company expects to pay roughly €1.0 million in severance costs but aims to save €4.5 million annually.
• The Goal: Management explicitly cited a plan to become an “AI-First company by 2027,” with AI tools expected to handle over 75% of operational workflows.
• Source: Gambling News | Additional Context: Bragg Investor Relations

The ‘AI-First’ Strategy

While economic factors played a role, the company was clear that automation is the primary driver for this reorganization. CEO Matevž Mazij stated that the cuts are part of a broader “AI-First” transformation. By 2027, Bragg aims to have AI-enhanced products account for 90% of all new launches. This transition is already underway; earlier this week, the company announced a partnership with data science firm Golden Whale to integrate machine learning into its player account management systems.

Economic Headwinds

Beyond the technology shift, traditional business pressures also contributed to the decision. In a statement to investors, Mazij noted that “increasingly complex regulatory compliance requirements” and tax challenges in key regions made the cuts necessary. The company is focusing on short-term profitability to maintain its cash runway. The restructuring is designed to fix the company’s cost structure while it prepares for potential market consolidation.

Impact on Operations

The reductions will primarily hit operational roles that can be streamlined through the new AI initiatives. The company plans to use these automated tools to manage player retention and churn prediction more efficiently than human teams could alone. While the initial costs of the layoffs will impact the first quarter of 2026, the company expects the operational savings to improve its bottom line significantly by the end of the year.