Gaming supplier giant International Game Technology (IGT) has laid off around 700 employees, according to multiple reports out of its home state of Nevada.
The Las Vegas-based slot manufacturer and gaming technology giant sent an internal company email from Chief Executive Officer Hector Fernandez announcing the cuts, outlets including the Las Vegas Review-Journal and the Reno Gazette Journal reported late Monday.
The layoffs amount to roughly 10% of the firm’s global workforce.
Next phase of life after Everi merger
An IGT spokesperson told SBC Americas that the layoffs are intended to help the business pursue long-term growth and “move forward with greater focus, agility and competitiveness” following the completion of its $6.2bn merger with Everi and the combined company’s acquisition by private equity firm Apollo Global Management last year.
“As we advance the integration of the legacy IGT and Everi businesses, we are aligning our organization to accelerate innovation, strengthen execution and position the company for long-term growth,” said the spokesperson. “To support this next phase, we are aligning resources and streamlining our operating model to focus on our highest growth opportunities and strategic priorities, impacting approximately 700 employees globally, 10% of our workforce.”
“We thank these employees for their contributions and service to our organization, and we are committed to supporting affected employees with severance, outplacement services, and, where possible, opportunities elsewhere within the company. This strategic realignment positions IGT to move forward with greater focus, agility and competitiveness.”
Latest move in ‘structural alignment’
That echoes the language reportedly used in the internal email by Fernandez. “This reduction is required to align resources with business priorities and streamline operations, ensuring we are best-positioned for future growth,” wrote the CEO, per the Review-Journal. Fernandez added in the letter that the layoffs were “not performance-driven” but reflect the final “structural alignment” after the Everi and Apollo deals.
IGT has been through several other major changes over the last two years, in addition to the Everi merger. Last year, it rebranded its global lottery business to Brightstar Lottery and also divested its gaming and digital segment through a taxable spin-off to shareholders in a deal valuing the business at approximately $4bn.
The Wheel of Fortune slot supplier is the world’s leading manufacturer of land-based slot machines for brick-and-mortar casinos and other physical gaming. It also provides some of the most popular online slots, like Cash Eruption, as well as technology and systems solutions to various partners across the globe.
Its U.S. footprint includes not only land-based and online casino games but also exclusive sports betting contracts with the likes of FanDuel for retail wagering and the Rhode Island Lottery for both retail and online betting.
‘A difficult but necessary step’
“When we met in December for our first companywide town hall since I started as incoming CEO, I said we would move quickly to evaluate our business and make decisions to strengthen it,” added the CEO, who joined IGT late last year after rising to CEO of Aristocrat Gaming. “Over the past several months, we have kept that commitment. We examined 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 … We are building a stronger organization, not simply a larger one, and that requires difficult choices.”
