EBET has confirmed that it will reduce its number of employees and contractors by approximately 54% as it aims to reach a positive EBITDA run rate beginning this month.
EBET cuts costs as it eyes profitability
Unveiling a ‘profitability plan’, the firm noted that its workforce will be reduced alongside a wave of other cost-cutting measures as the firm seeks to ‘enhance the profitability of its newly acquired igaming assets’.
As well as shrinking its workforce, EBET will optimize its marketing costs and improve the efficiency of its campaigns, whilst also reducing its total operating costs and eliminating its non-material contracts.
Cuts for esports but the game isn’t over
Notably, EBET – which rebranded from Esports Technologies earlier this year – confirmed it would be reducing its investments in ‘non-revenue-generating’ esports products, as it shifts towards its igaming portfolio. This seems to confirm reports that emerged last week claiming that it would be abandoning its esports portfolio.
The Sharpr substack of esports business journalist Cody Luongo and contributor James Fudge reported that the firm would cut staff and terminate its esports ventures but, while this announcement does indeed indicate a shift away from esports, the firm is yet to go the whole way.
As well as boosting the EBITDA of its newly acquired igaming venture, EBET also detailed its aims to reach profitability across its existing esports products.
‘A major inflection point’
“We are on a current run rate to achieve positive EBITDA this month and feel that we have reached a major inflection point for EBET’s business,” commented Aaron Speach, CEO of the firm.
“I have never been this excited about EBET’s future for our executive team and our shareholders. We are seeing significant scalable gains and look to continue the path to increase profitability and shareholder value.”
Meanwhile, ahead of its Q3 earnings call scheduled for later today, EBET revealed its intentions for geographic expansion, with it anticipating regulatory approval to enter the Netherlands and Ontario towards the end of this calendar year.