Finland’s state gambling company published a statement explaining its reasons for the cuts, primarily centred around an approximately 40% dip in gaming volume from its physical sales channels.

While the exact number of employees to be terminated is not yet set in stone, as many as 190 people could lose their jobs, with Veikkaus adding that it expects a further 50 officials and 60 to 110 employees will see their contracts ‘materially changed’.

This comes as the monopoly looks to make savings of €15m ($17m) by 2024, driven in large part by the closure of roughly 15 gaming arcades, whose profitability has dropped below sustainable levels.

“Our goal is to innovate and build a forward-looking, truly dynamic Veikkaus; a sustainable, modern, and efficient company that enjoys the support of the Finnish people,” said Jari Heino, the Finnish company’s SVP of Channels and Sales.

“Besides the actual negotiations, we considered the future guidelines and the areas to be developed in various presentation and dialogue events with personnel, as well as in different employee info sessions.

“We received a wealth of feedback and ideas for further development, and we have used them as a basis of our plans wherever possible.”

Veikkaus has experienced significant struggles during the Covid-19 pandemic, being forced to furlough up to 800 of its staff in January due to the closure of the majority of its gaming machines.

In August, the Finnish state-owned gambling company entered into redundancy negotiations with its workers, talks which have now come to fruition.

Heino expressed regret at the cuts, saying: “Unfortunately, the accommodations we have had to make also mean that the employment relationships of about 125 to 190 members of Veikkaus personnel come to an end at Veikkaus.”