Enthusiast Gaming (TSX: EGLX) last night indicated it is set to implement significant cost saving measures across its business. The company is targeting a reduction of $10 million in annual costing through the cutbacks.
The changes, which are expected to be implemented by the end of the first quarter, are said to include headcount reductions along with the consolidation of offices, finding efficiencies in adtech, and the insourcing of production and content resources. Further details on what the proposed headcount reductions would entail were not released by Enthusiast.
Further details on the cutting back of operations are said to be released on an earnings conference call scheduled for April 1, 2024.
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“The changes that we have initiated will further enable Enthusiast Gaming to operate with a more sustainable organizational design, leveraging our valuable owned and operated communities, where we will continue to deliver the best experiences for our members and stakeholders, and with that, the strongest financial performance,” commented Adrian Montgomery, interim CEO of Enthusiast.
Enthusiast employed approximately 200 people as of September 30, 2023, as per company filings with regulators.
The change follows the company announcing in early February that it would be suspending its reporting requirements with the SEC, following the delisting of its shares from the Nasdaq as part of cost cutting measures.
Enthusiast Gaming last traded at $0.23 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
