Gaming equipment maker and content provider International Game Technology Plc (IGT) is to reduce its global workforce by approximately 700 employees, according to an internal memo on Monday by the group’s chief executive Hector Fernandez.
The news was first reported by the Las Vegas Review-Journal, which said the layoffs would affect around 10 percent of IGT’s total staff.
In the letter to employees, Mr Fernandez – who in December assumed the CEO role – said the move was “required to align resources with business priorities and streamline operations,” in order to ensure the group is “best-positioned for future growth”.
The current IGT was formed through the combination of IGT Plc’s gaming and digital business and fintech specialist Everi Holdings Inc, in a circa US$6.3-billion deal involving funds linked to private equity firm Apollo Global Management Inc. The operation was completed in July last year.
The CEO said the group’s management spent the last few months evaluating the business and making “decisions to strengthen it”.
“We examined where we focus, how we operate, and how our structure supports our strategy,” Mr Fernandez stated.
“As part of that review, we also had to make some difficult decisions about how our organisation is structured, and this work has led to a difficult but necessary step,” he added.
The executive said “much of the foundational work needed for a stronger, more competitive organisation” had now been completed.
“The changes we are announcing today are part of that effort to simplify our structure, reduce duplication, and enable us to move with greater clarity and speed,” he noted.
Mr Fernandez said severance packages would be provided to workers facing layoffs. “For those leaving IGT as part of this action, we are committed to providing severance, outplacement support and transition resources,” the CEO stated.
He added: “What matters now is how we move forward together: supporting one another, focusing on our priorities and continuing the work that will define the next chapter of our company.”
The leaner IGT “will continue to drive innovation, execute our strategic priorities, and deliver the high-quality service our customers expect,” Mr Fernandez concluded.
