The BetMakers Technology Group Ltd (ASX: BET) share price is among the market's top gainers on Wednesday. It's rising 24% at the time of writing to trade at 15.5 cents.
The gains come as the company updates the market on its strategic operational restructure – expected to put it onto the path to profitability.
Let's take a closer look at the moves the company is making on the back of a wide-ranging operational review.
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What's going right for the BetMakers share price today?
The BetMakers share price is the All Ordinaries Index (ASX: XAO)'s biggest gainer after the company forecast "significant operation overhead reductions and savings across the business".
To realise that, the company will slash over 120 jobs, saving more than $20 million.
It's the result of an operational review, undergone over the past four months, on which the company provided an update today. It follows numerous board and management changes, announced in January.
Today's release states:
The operational restructure has been made possible by streamlining and consolidating key software
offerings and leveraging technology monitoring and reporting capabilities.This in turn, has allowed the company to streamline its operational infrastructure.
It now expects its annual staff and operating overheads to drop from $91.5 million in the first half to around $70 million from the first quarter of the next financial year.
Meanwhile, the number of employees at the company is set to fall to around 440 by the first quarter of financial year 2024. That's down from 568 as of 31 December 2022.
The global efficiency program is forecast to come at a cost of $2 million to $2.5 million.
What did management say?
Commenting on the news driving the ASX share's gains today, BetMakers CEO Jake Henson said:
BetMakers is committed to providing long-term value to shareholders and this restructuring is an essential step towards achieving that goal.
The changes made aim to provide the business with a clear path to profitability while also providing a more streamlined operating structure to maximise future growth opportunities.
For our customers, who are at the core of our value creation process, we are committed to delivering best-in-class levels of service and quality. The investments in our technology and the extended rollout of our platforms and products into all regions both domestically and globally will support this ongoing commitment.
BetMakers share price snapshot
Today's gains haven't quite been enough to boost the BetMakers share price back into the longer-term green.
The stock is still 46% lower than it was at the start of 2023. It has also fallen 69% over the last 12 months.
