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Cryptologic Cutting Costs, Improving Company

17 November 2010 by admin

cryptologicCryptologic was one of the first online casino software companies to make a name for themselves. Established in 1996, they are one of the veterans of the business and are one of the most respected brands in the industry. Their software is trusted and they have an impressive suite of games. None of that could protect the company from financial ruin, though.

In 2009, Cryptologic lost $10.7 million and then through September of 2010, they lost another $19.8 million. While the online gambling industry is thriving and many companies are expanding, Cryptologic has been in a downward spiral, caught in so much red ink that they look like an Economics exam from a future Democratic politician.

Losing that much money and showing no signs of being able to recover, they did what any company would do: They asked for a multi-million dollar government bailout, hoping that the taxpayer money could stop the bleeding long enough for them to get around to asking for more bailout money. After all, we all know that every problem can be solved by throwing money at it, right?

I’m kidding, of course. Cryptologic, based in Dublin, did not receive bailout funds from the Irish government or even the American government, who loves spending money so much that they often do it for foreign companies. Instead, Cryptologic actually used a common sense approach and decided to look at their company and see how they can improve and right the ship.

jimgaffiganIn August, the company announced that big changes were underway and the company would dig themselves out of the financial hole. CEO Brian Hadfield resigned and was replaced by David Gavagan, who I already like because he makes me think of the comedian with the great Hot Pockets jokes. The new CEO started a restructuring plan aimed to cut the company’s workforce in half.

Something radical like that can’t work, right? I mean, restructuring and getting rid of dead weight can’t help, can it? Well, so far Cryptologic has cut their expenses by more than $9 million. More changes and more cuts are still to come.

Cryptologic hopes to have a big 2011, thanks to slashed costs, the release of a number of new games, and new licenses they plan to sign with online gambling websites. If all goes well, Cryptologic will be a profitable company once again soon.

One Response to “Cryptologic Cutting Costs, Improving Company”

  1. danielle jacobs says:

    well I just hope that Cryptologic can rise from this downfall very soon.