Gambling.com Group is the latest company to have enacted redundancies, as the group moves towards a strategic restructuring and increasing use of artificial intelligence (AI), according to employees and multiple sources.
Redundancies Are Happening, as Company Still Absorbs Impact of New Challenges
Rumors broke ahead of the company’s Q1 earnings call on Thursday, May 14. The update confirmed skepticism that was first expressed in March this year.
On LinkedIn, a social media platform for mostly white-collar workers, several employees have shared that they have been impacted by the changes, which have affected as many as 25% of the workforce, as later confirmed by the company itself.
Among those impacted have been Gambling.com Group’s remote workforce, as well as the SEO and finance departments. An estimated 150 employees have now been made redundant, some employees have suggested.
The company focused on outlining the overall outlook during the earnings call, citing first-quarter revenue of $40.4 million, flat year-over-year, and a 5% decline in marketing services revenue due to ongoing regulatory and SEO challenges.
The company’s EBITDA margin also declined from 39% in Q1 last year to 22% in the most recently reported period. The main regulatory challenges originated in the United Kingdom and Finland, where changes have had worse-than-expected outcomes.
Revenue in the United Kingdom took a 30% hit, with analysts homing in on this. Gambling.com Group responded by saying that it has seen some encouraging signs already and a possible path back to better operational results, but the company declined to include this in its guidance.
The workforce reduction does not come in a vacuum, as the company is citing up to $13 million in expected savings from reducing headcount. Gambling.com Group also saw its sports data services expand by 13% year-over-year and contribute 28% of total revenue.
The company has also updated its full-year 2026 guidance for revenue to be in the range of $165 million to $170 million, while adjusted EBITDA is set in the range of $45 million to $50 million.
Gambling.com Group CFO Elias Mark noted that a faster shift away from SEO channels is underway, alongside lower revenue expectations.
The restructuring highlights a broader shift in how the company is adapting its cost base to changing market conditions.
The impact of SEO-related headwinds continues to play a central role in the company’s near-term outlook.