TRANSGAMING ANNOUNCES COST REDUCTION MEASURES TRANSGAMING ANNOUNCES COST REDUCTION MEASURES
TransGaming Inc. is undertaking significant cost-reduction measures in order to preserve its cash resources as revenue growth has slowed in recent months. Beginning in May, 2016, the company plans to reduce its operational and administrative head count by more than 50 per cent and restructure its overseas offices, with total annualized operating expense savings of approximately $1.3-million. Existing MSO (multiple-system operators) partners will continue to be serviced by the remaining personnel; however, the company will not invest in the deployment of new services in the connected television space going forward.
"This was a difficult decision but a necessary one to ensure the ongoing viability of TransGaming," commented Dennis Ensing, chief executive officer. "It is not easy to see our valued colleagues leave the company. We want to express our deep appreciation for their contributions and to wish them well in the future.
"Our head count reduction will be conducted systematically, and, in parallel, we are reviewing a range of alternatives," added Mr. Ensing.
The company is evaluating opportunities to enhance shareholder value, including the sale of GameTree TV business to a third party, while also considering strategic business transactions for the company. There are no assurances that any strategic transactions will result in an incremental net benefit to shareholders.