It is still too early to say what the long-term implications of IGT’s surprise announcement last month that it was laying off 700 employees globally, how it will affect the Nevada business and whether any competitors will be able to take advantage.
IGT CEO Hector Fernandez said on March 23 in a letter to employees that the reduction “is required to align resources with business priorities and streamline operations, to ensure we are best positioned for future growth.”
Analysts said the downsizing — a layoff of about 10 percent of its global workforce — was primarily the result of the merger of IGT and Las Vegas-based Everi Holdings, which was first announced more than a year ago in February 2025. Months after the combination was announced, Apollo Global Management entered the picture in July, announcing it was acquiring both Gtech-based companies for $6 billion from Gtech, London Holdings.
The lottery company that once operated as IGT has changed its name to Brightstar and operates in the United States from Providence, Rhode Island.
Overlaps led to redundancies
Phil Bernard, an analyst at California-based Eilers & Krejcik, said the drawdown was expected, given the overlap of positions between IGT and Everi.
“It makes sense, although it’s always a difficult decision,” Bernard said in an email.
“I would also say that the delay between the announcement of the merger and the closing of the deal was a greater opportunity for competitors to take part because of the uncertainty about the future direction of the company,” he said. “With that over now and the size of the rights announced, IGT is in a better competitive position going forward and market share gains or losses will ultimately be determined by who puts out the best games and product.”
Delay in the CEO’s arrival
Fernandez was unable to immediately assume his leadership role due to a non-competition commitment he had when he left gaming equipment manufacturing rival Aristocrat Gaming, a subsidiary of Australia’s Aristocrat Leisure Ltd., to join IGT.
“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 to employees. “Over the past few months, we have kept that commitment. We examined where we focus, how we operate and how our structure supports our strategy.”
Brendan Bussmann, managing partner of Las Vegas-based B Global, said some rivals anticipated the prospect of layoffs and that the delay gave them an opportunity to strategize. Now that downsizing is officially happening, rivals may have the opportunity to hire available talent released by IGT.
Bussmann said it’s important to note that IGT is a multifaceted company involved in more than just making slot machines.
The company develops and supplies slots, cabinets and casino operating systems and offers both traditional machines and digital software. The digital side focuses on online and mobile content and the financial technology side of the business provides payment systems for gaming operators.
Still the market leader
IGT continues to lead in market share, followed by rivals Light & Wonder, Aristocrat Leisure Ltd. and Konami Gaming Inc.
“IGT is mainstreaming its future business to be able to say, ‘Hey, how do we do this in the best possible way?'” Bussmann said. “And we’ll see how it goes over time and what they propose.”
Company representatives have said they planned no further comment on the layoffs beyond their release of Fernandez’s letter to employees announcing the downsizing. A company representative on Thursday said IGT was not required to file a Worker Adjustment and Retraining Notification (WARN), but did not explain why.
Bussmann said the manufacturing sector is a cyclical industry based on demand and the need to upgrade technology.
“Most people probably don’t remember that Bally used to be a slot machine company,” Bussmann said. “I think about some of those companies over time and where they’ve been. There’s always been an ebb and flow in that supplier world, and they’ll continue to do so over time as companies get business down the road. Some products work and some don’t, that’s the nature of the beast.”
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