In a foreboding turn of events, Kindred Group has unveiled its ominous plan for a complete exit from North America by the end of Q2 2024, accompanied by a dark cloud of substantial workforce reductions.
The announcement follows the group's ongoing strategic review initiated in April, promising a wave of unsettling changes.
The North American departure is a distressing maneuver, signaling the reallocation of financial and tech resources as Kindred retreats from markets it once deemed promising.
This move is portrayed as a desperate attempt to salvage the company's standing in existing core markets, yet its impact on market potential and share remains uncertain.
Nils Andén, the interim CEO, somberly remarked, "The cost reduction actions announced today are both regrettable and drastic. While it is never our intention to bid farewell to valued colleagues, this move is portrayed as a necessary sacrifice to navigate the uncertain terrain of Kindred's future across locally regulated core markets."
As a sinister component of the broader strategic review, Kindred is poised to sever ties with over 300 individuals across the organization, casting a shadow on the affected employees in North America and beyond.
This organizational upheaval, shrouded in uncertainty, seeks to reshape Kindred into a skeletal version, focused on mere survival.
In addition to the North American retreat, Kindred is orchestrating a dramatic exit from the Norwegian market, an unsettling process set to conclude by the year's end. This decision punctuates a protracted battle with Norway's regulator, Lotteritilsynet, culminating in Kindred's forced abandonment.
The looming workforce reductions, coupled with the North American exodus, are painted as a grim cost-cutting measure, anticipated to bring about savings of approximately £40.0m (€46.2m/$50.8m) for Kindred.
The group envisions reallocating these resources as a feeble attempt to shore up initiatives across core markets, but the shadows of uncertainty persist.
In the twilight of Henrik Tjärnström's departure, and with Nils Andén steering the ship as interim CEO, Kindred's journey takes on a haunting tone.
The strategic review, originally framed as a beacon of hope, now casts a pall over the company's future, leaving stakeholders and employees alike in the eerie grip of an uncertain fate