Kindred Group to Exit North America by 2024
Kindred Group has announced its plans to fully exit the North American market by the end of the second quarter of 2024 as part of its ongoing strategic review. This decision comes as the company aims to reallocate financial and tech resources to existing core markets in order to improve its ability to capitalize on core market potential and gain market share.
As a result of this exit, Kindred Group will also be cutting more than 300 jobs across the business. The layoffs will affect employees in North America and consultants, with the job cuts set to take place next year. The company expects to achieve approximately £40.0m (€46.2m/$50.8m) in savings as a result of these actions.
Nils Andén, the interim CEO of Kindred, stated that while it is never desired to inform valued colleagues of redundancies, these cost reduction actions are necessary and decisive to ensure the long-term growth of the company across its locally regulated core markets. The re-allocation of financial and tech resources will support additional initiatives across core markets, including brand extensions and product differentiation through exclusive content.
In addition to the exit from North America, Kindred Group is also pulling out of the Norwegian market. This decision comes after a long battle with Norway’s regulator, Lotteritilsynet, which ordered Kindred subsidiary Trannel to cease operations in 2019. The saga concluded in June 2023 when the Borgarting Court of Appeal ruled that Lotteritilsynet had been correct to issue Kindred with a cease and desist order.
Kindred’s strategic review has been ongoing since April, following the previous CEO Henrik Tjärnström’s resignation. Tjärnström initiated cost-saving plans after the company experienced a year-on-year decline in revenue and net profit for the 2022 financial year.
The exit from North America and Norway is part of a larger effort by Kindred Group to streamline its operations and focus on core markets for long-term growth. As the company continues to navigate these changes, it remains committed to its strategic initiatives and selected markets where there is clear potential for future growth.