East Side Games Group Announces Cost Reduction Initiatives to Strengthen Financial Position

East Side Games Group Announces Cost Reduction Initiatives to Strengthen Financial Position

VANCOUVER, BC, Sept. 3, 2026 /CNW/ -- East Side Games Group Inc. (TSX: EAGR) ("East Side Games" or the "Company"), a leading developer and publisher of free-to-play mobile games, today announced a series of cost reduction and operational restructuring initiatives designed to strengthen its balance sheet, improve free cash flow, and position the Company for sustainable, profitable operations.

Key Highlights

• Workforce Reduction: The Company has reduced its workforce by approximately 30 employees, representing approximately 32% of its total headcount, effective September 1st through a combination of layoffs and furloughs. With its streamlined workforce, the Company is positioned to operate more efficiently, in-line with its renewed focus on profitability.
• Annualized Cost Savings: The workforce reduction, together with related operational efficiencies, is expected to generate approximately $3.5 million in annualized cost savings, with the majority of savings expected to be realized beginning in Q4 2026. This is in addition to the $4M in annualized cost savings implemented year-to-date.
• Portfolio Rationalization: The Company is reprioritizing its development portfolio, including the pausing or scaling back of certain titles and projects, allowing the Company to concentrate resources on its highest-performing and highest-potential live games.
• Partner Payment Restructuring: The Company is restructuring payment terms with certain development and publishing partners to better align cash outlays with project performance and cash flow generation.

'These are necessary decisions. Our objective is to build a leaner, more focused organization that can deliver consistent profitability for our shareholders while continuing to invest in the titles and franchises with the greatest long-term potential,' said Jason Bailey, CEO of East Side Games Group.

About East Side Games Group Inc.

East Side Games Group Inc. (TSX: EAGR) is a leading developer and publisher of mobile games based in Vancouver, Canada, known for creating immersive experiences built around some of the world's most beloved entertainment franchises. For more information, visit [www.eastsidegames.com].

Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, including statements regarding expected cost savings, the timing and amount of related charges, the Company's relationship with RBC, anticipated financial impacts, and future operating and financial performance. Forward-looking information is based on the Company's current expectations, estimates, and assumptions, and is subject to known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied, including but not limited to: the Company's ability to realize anticipated cost savings on the expected timeline or at all; the outcome of discussions with RBC and the Company's ability to maintain compliance with, or obtain relief from, its credit facility covenants; the impact of workforce reductions and project cancellations on the Company's operations, employee morale, and relationships with development partners; general economic and industry conditions; and other risk factors described in the Company's public disclosure documents filed with Canadian securities regulators and available on SEDAR+ at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date of this press release. Except as required by applicable law, the Company undertakes no obligation to update or revise any forward-looking information.

SOURCE East Side Games Group Inc.