G5 Entertainment has launched a cost reduction program aimed at reducing the workforce to approximately 635 employees from approximately 815 employees before the program. The program will be executed during the second quarter of 2026. The annual savings from the staff reductions are estimated to be approximately 6.2 MSUD or 57 MSEK annualized. The cost for severance is estimated to be approximately 0.7 MUSD or 6.5 MSEK, a one-off expense that will impact the second quarter of 2026.
“In order to take the organization to the size that corresponds with the size of the business and to protect our margins, we made a difficult but necessary decision to reduce our staff by approximately 180 employees. This will create temporary expenses in Q2 but is essential for long-term financial health and focus. While this reduces the costs for the second half of the year, the continued decline of the revenue in combination with our intention to spend more on UA would still present a challenge for the profit margins in the foreseeable future. The performance of our two new games in development, and the level of support for Jewels and Sherlock games will determine the right size of the team going forward. We remain open to bring the team to the right size for the amount of work at hand depending on these decisions.” - said Vlad Suglobov, CEO of G5 Entertainment.
The company does not foresee any significant margin improvements from the cost reduction program in the coming quarters. Annual savings will likely offset margin impact from declining revenue as well as increased investment in user acquisition to stabilize the game portfolio.
The cost reduction program will not impact the roadmap for the first half of 2026. Further reductions can occur tied to the performance of the company’s initiatives in game development and support for active games.