Slot machine manufacturing giant IGT is laying off 700 workers globally, about 10 percent of the company’s workforce, the company’s top executive announced 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, ensuring 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 corporate 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 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,” Fernandez said in his letter. “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,” he said.
Fernandez said the layoffs aren’t “performance driven,” but “reflects the structural alignment required to operate as one company, 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, more competitive organization,” he said. “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.”
Fernandez said severance packages are being provided to workers facing layoffs. He said his guideline of adhering to 5 C’s in business — culture, capabilities, content, commercialization and cash-flow creation — are his core drivers of long-term value.
“For those leaving IGT as part of this action, we are committed to providing severance, outplacement support and transition resources. For those remaining, you may feel sadness for colleagues, concern about your teams, or uncertainty about the future. Those feelings are natural in moments like this,” he said.
“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. We came 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 most famous for its Wheel of Fortune series of slot games, also has a systems business, financial technology, land-based slot machines, online slots and cabinets, the hardware that houses a typical slot machine.
The leaner IGT “will continue to drive innovation, execute our strategic priorities, and deliver the high-quality service our customers expect,” Fernandez said.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.