Hero Gaming Implements Major Workforce Reduction to Cut Costs and Realign Strategy

In a bold move aimed at significantly reducing operating costs, Hero Gaming, a prominent player in the iGaming industry, has undertaken a substantial downsizing effort, exclusively disclosed by iGaming NEXT. This restructuring has resulted in approximately 60 employees either departing or planning to exit the company, a result of voluntary resignations or involuntary redundancies, as staff members were presented with two distinct paths for separation.

The downsizing initiative, which commenced at the start of last week, offered varying compensation packages to the majority of employees affected by redundancy or resignation. A notable development stemming from this transformation is the resignation of the company’s CEO, Patrick Jonker, a former Managing Director of William Hill International, who held his position for a mere 10 months.

In Patrick Jonker’s stead, Sarah Stellini has been appointed as the permanent CEO of Hero Gaming. Ms. Stellini originally joined the organization as a Commercial Director in April of the current year. It’s also worth noting that several C-level executives and senior department heads have exited the company as a consequence of these cutbacks.

These workforce reductions were enacted across Hero Gaming’s two operational hubs located in Malta and Sweden. Hero Gaming’s Chairman, Georg Westin, commented on the situation, stating, “We still have a very good company and believe in our focus markets. However, it is costly, which has led to the decision to downsize and get back to a profitable situation.”

Sources close to the matter, speaking anonymously to iGaming NEXT, suggested that the company’s aggressive forays into new markets had not yielded the anticipated results and were a significant factor contributing to these measures. Notably, Hero Gaming had sold its Swedish-facing B2C business, including its Speedy-branded casino assets, to Finnish operator Paf in August of the previous year, refocusing its efforts on B2B operations.

Georg Westin, Hero Gaming’s founder and chairman, explained, “Hero Gaming has gone through large changes in market conditions over the past years, and our Swedish business was sold which has led to a new situation.” He reiterated his belief in the company’s potential, emphasizing the decision to downsize as a strategic move to regain profitability.

Regarding the leadership transition from Patrick Jonker to Sarah Stellini, Westin remarked, “Patrick has done a great job for us, but Patrick and the board came to the conclusion that with a smaller size, we think Sarah is going to be a great CEO. I have just as much faith in Hero Gaming as ever and with the great people, technology, and brands, we have a thriving future.”

Sarah Stellini will assume her role as CEO with immediate effect. Prior to her tenure at Hero Gaming, she held positions at Betsson Group as Head of New Business and boasts experience from her time at Catena Media.

Stellini elucidated on the company’s recent strategic adjustments, stating, “As a result of this, it was a natural transition to refocus on the agility of the business and re-organizing it to serve the current markets it operates in. This process led, unfortunately, to resignations from some employees, while other employees in our Swedish office were unfortunately made redundant following the required legal process, together with organized discussions with the respective employee unions.”

Hero Gaming’s decision to restructure its workforce represents a significant shift in its operational approach, as it aims to streamline its operations and refocus on core markets to ensure a prosperous future in the dynamic iGaming industry.