Evolution Axes 1,000 Jobs in Tbilisi
iGaming B2B solution provider Evolution has laid off 1,000 staff members in Georgia amid an ongoing strike at its Tbilisi studio.
Striking employees stage sit-in outside Evolution Georgia offices.
LISTEN TO THIS ARTICLE:The massive layoffs were a response to the staff strike that began in mid-July, reportedly sparked by employee concerns over workplace safety, harassment, and low wages.
On August 1, Evo-Union, the trade union representing Evolution Georgia employees, staged a blockade at the Tbilisi office, effectively barricading the entrances and preventing non-striking staff from entering the premises. This move disrupted the company's daily operations and hindered its ability to conduct business as usual.
Following the escalation of the strike last week, Evolution warned that it would have no option but to lay off some of its workers in Georgia and possibly withdraw from the region unless the strikes stop. However, according to reports, the union called the company's bluff, arguing that the operator will not leave a profitable jurisdiction like Georgia and that it has amassed enough profits to address the concerns they raised in the dispute.
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Union Blockade Blamed for Cuts
In its statement regarding the new layoffs, Evolution specifically cited the trade union's unlawful blockade as the reason for the permanent staff cuts. According to the company, these actions have led to a loss of business, as clients have suspended operations of their live casino tables at Evolution's Tbilisi studio.
Furthermore, Evolutuon described the strike's effects on its client relationships as "permanent damage" and said it would relocate most of its customer-specific tables to its other international studios. The supplier has begun disassembling and removing these tables from its Tbilisi studio as it reevaluates its operations in the Georgian capital.
Before the staff reduction, the Tbilisi studio had a workforce of more than 5,000. Evolution has warned that if the strike situation and its relations with the trade union are not resolved, further job cuts could be on the horizon.
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