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Evolution has laid off a total of 1,000 staff members across its Georgia-based operations in response to an ongoing strike at the firm’s Tbilisi studio.
The company warned about the “large-scale layoffs” last week – as a direct result of a staff strike that has been ongoing since mid-July due to “unsafe and unsanitary workplace conditions, harassment by managers and meagre pay”, according to media reports.
On 1 August, Evo-Union – the trade union for employees of Evolution Georgia – blocked the entrances to the Tbilisi office, which then prevented non-strikers from performing their duties, impacting day-to-day business operations.
The global gaming supplier attributed the layoffs to “recent illegal actions” taken by the trade union that have caused Evolution’s clients to refrain from operating their live casino tables out of the company’s Tbilisi studio.
“This regretful decision was not taken lightly,” Evolution said when announcing the redundancies via its Facebook page.
“It is a direct consequence of the union’s unlawful actions and its negative impact on Evolution’s operations in Georgia, and the damage it has caused on Evolution customers’ view of Georgia.
“The recent illegal actions initiated by one of the local unions have hindered Evolution’s ability to operate in Georgia and has hurt Evolution’s customers, many of which now no longer wish to operate their tables from Georgia,” Evolution’s statement read.
Evolution referred to the impact strike action has had on the company’s relationship with clients as “permanent damage”, specifically naming the strikers’ illegal blockade as a reason for the permanent workforce reduction.
In taking the first steps towards reassessing its presence in Georgia’s capital, Evolution will move “most of its customer-specific tables to its other studios worldwide”, with the dismantling and removal of its clients’ tables having already begun.
The statement continued: “Evolution has created work opportunities for tens of thousands first-time workers, offering the Georgian youth the opportunity to take the first step in their career in an international company.
“We have always done our very best to create a good and respectful work environment for our employees, with fair pay and development opportunities. There are things we could have done better, and we are committed to continuing to work for improvements also going forward.
“It is with deep regret that the actions of a smaller number of individuals bring these consequences for so many.”
With over 5,000 employees working at the Tbilisi studio, Evolution suggested that if the strike situation and its relationship with the trade union do not improve, further reductions could take place.
