Evolution to cut 1,000 jobs in Georgia as supplier cites “unlawful actions” by union

Evolution is set to slash its workforce in Georgia by 1,000, with the supplier giant blaming “unjust activities” by a local trade union in disrupting the Tbilisi studio over the course of the past month.

The mass redundancies come after Evolution had previously threatened “larger-scale layoffs” in early August, after the union had staged a walkout at the hub that disrupted day-to-day operations.

Evolution had also claimed union members blocked the entrances to the offices, which in turn had “stripped thousands of employees from their job opportunities”.

In a new update from the Stockholm-listed firm’s Georgian subsidiary, the supplier confirmed it will commence a downsizing process and begin to move roles to its other global studios and out of Georgia.

The company described the strike action as an “unfortunate situation” that had forced Evolution to assess its standing in the market.

Originally, around 5,000 Evolution Georgia staff had planned to strike on 12 July, with local media reporting staff complaints of allegedly unsafe and unsanitary workplaces, as well as harassment and inadequate pay.

Evolution later claimed only around 500 employees took strike action, although disruption had continued over the following weeks.

The company confirmed it has started reducing the number of live gaming tables in the Georgian studio, with operations set to move to its other locations across the globe.

Evolution’s head of investor relations, Carl Linton, previously told EGR that relocation had been an option.

He said: “Evolution is a global player with 20 studios worldwide, and several new ones being established, meaning that although we initially see some impact on our delivery capacity, we have the ability through our studio network to reach full capacity.”

The supplier added that a further reduction in the Georgian workforce could not be ruled out.

Via a Facebook statement, Evolution said: “Evolution does not exclude the risk of being forced to impose further reductions if the situation does not improve and until the assessment of the damage caused by unlawful actions initiated by the union is completed.

“This sad decision was not an easy one to make. It is a direct result of unjust actions of the mentioned trade union and it is caused by the negative effects of these actions on Georgian studio.

“There are issues we could have done better on and will definitely continue to focus on these issues and improve on them going forward.

“We are very sorry that the actions of a small group of specific people will have a tragic impact on many other people.”

The industrial actioned had been initiated by the UNI Global Union’s Georgian affiliate.

Evolution opened its studio in Tbilisi in 2018 and employs around 7,000 people in the former Soviet republic.

EGR has contacted Evolution for further comment.