Slot machine manufacturing giant IGT is laying off 700 employees globally, about 10 percent of the company’s workforce, the company’s top executive announced on Monday.
In a letter distributed to employees Monday, CEO Hector Fernandez said the reduction “is required to align resources with business priorities and streamline operations, to ensure we are best positioned for future growth.”
The company would not disclose how many of the layoffs affect workers in Nevada and Las Vegas, the company’s new headquarters after New York-based Apollo Global Management Inc. acquired it from an Italian lottery group, Gtech Holdings, in July for $6.3 billion.
“When we met in December for our first company-wide town hall since I started as CEO-elect, I said we would move quickly to evaluate our business and make decisions to strengthen it,” Fernandez said in his letter. “Over the past few months, we’ve kept that commitment. We’ve looked at where we focus, how we operate and how our structure supports our strategy.
“As part of that review, we also had to make some difficult decisions about how our organization is structured, and this work has led to a difficult but necessary step,” he said.
Fernandez said the layoffs are not “performance-driven,” but “reflect the structural adjustment required to operate as a business, leverage our combined strengths and compete with focus and discipline in a changing industry.
“In recent months, we have completed much of the foundational work needed for a stronger and more competitive organization,” he said. “The changes we’re announcing today are part of that effort to simplify our structure, reduce duplication and enable us to move with greater clarity and speed.”
Fernandez said severance pay is being provided to workers facing layoffs. He said his guideline of following the 5 Cs of business – culture, capability, content, commercialization and cash flow generation – are his core drivers of long-term value.
“For those leaving IGT as part of this action, we are committed to providing severance pay, relocation support and transition resources. For those who remain, you may feel sadness for colleagues, concern for your teams or uncertainty about the future. These feelings are natural at times like these,” he said.
“What’s important now is how we move forward together: supporting each other, focusing on our priorities and continuing the work that will define the next chapter of our company. We joined together to build a company that can lead in a rapidly evolving industry, and I remain confident in that opportunity and in the strength of our team.”
IGT, a leading slot machine manufacturer best known for its Wheel of Fortune line of slot games, also has a systems business, financial technology, land-based slots, online slots and cabinets, the hardware that houses a typical slot machine.
The slimmer IGT “will continue to drive innovation, execute on our strategic priorities and deliver the high-quality service our customers expect,” Fernandez said.
This is a development story. Check back for updates.
–
