Exclusive: Evolution breaks silence amid NetEnt restructuring row
CEO Martin Carlesund slams media claims of “celebrations” in Qormi studio following takeover meeting
Evolution CEO Martin Carlesund has defended the live casino operator’s actions following the decision to close the NetEnt Live casino brand and axe over 300 members of staff across the firm’s international offices.
In an email to NetEnt and Red Tiger employees seen exclusively by EGR, Carlesund slammed Maltese media claims that the firm’s executives were “celebrating” the closure of the NetEnt Live casino brand at the firm’s Qormi studio, claiming that no such event took place.
“While it is understandable that emotions run high in a situation like this, this is of course unfortunate and unfair to our teams that work hard and try to navigate the organisation through this change and disrespectful to those directly impacted by the changes,” he wrote.
Carlesund defended the firm’s silence on the matter, claiming that speaking out would escalate the situation and not be in the interest of employees affected.
However, EGR has learned Carlesund was not in attendance at the meeting in the studio, with former NetEnt employees claiming that Evolution had acted aggressively and “without regard” for its employees and supplier partners in closing the NetEnt Live brand.
The Evolution CEO also confirmed the firm had agreed a closure timescale for the Qormi studio with employee representatives and legal counsel.
Responding to a recent court injunction issued following action from Malta’s General Workers Union (GWU), Carlesund, who arrived in Malta in advance of the court hearing, confirmed the union had not been involved in discussions at any point, with the firm instead working with elected employee representatives.
The GWU has previously suggested Evolution violated Maltese employment law by knowingly excluding it from employee negotiations and has further breached regulations concerning collective redundancies.
“We will present how our actions have been in line with Maltese labour law and how we believe that we have acted in the best interest of impacted employees to the Court this week,” he revealed.
EGR can reveal that while the former NetEnt development and engineering studio in Krakow would close, several employees will remain with the business until mid-2021 to complete key projects.
More than 90 members of staff have been affected by this closure, with a further 90 roles cut in the firm’s Stockholm office, which is also set to close. It is understood the cuts were made due to the closure of NetEnt Live and to increase “overall efficiency” within the firm’s slots department.
EGR can also reveal that a number of high-profile NetEnt development projects in Spain and Croatia, as well as the development of a new live casino studio and platform, were all placed on hold in the weeks prior to the takeover completion.
In addition, EGR understands that NetEnt’s commercial team is currently undergoing a reorganisation following the integration of the two businesses, with a new leadership structure being implemented.
This process has seen several Evolution executives given new roles in the new NetEnt brand.
It is understood this reorganisation impacts both NetEnt offices in the UK and Gibraltar, with formal processes currently underway and expected to continue into 2021, as well as additional integration initiatives.