IGT to reduce international workforce
Gaming products designer and manufacturer International Game Technology (IGT) has announced it is to cut 7% of its global workforce as part of a cost-saving measure.
The company said that it is taking action to “re-align” its cost structure to save $30 million in the current financial year and an estimated $50 million on an annual run-rate basis.
IGT said it is also lowering its fiscal year 2014 guidance for adjusted earnings per share from continuing operations from between $1.28 and $1.38 to $1.00 and $1.10.
Patti Hart, chief executive officer of IGT, said: “As we reach the halfway point in our fiscal year, you can see this is a challenging time for the industry and IGT.
“We knew that our success in 2013 would be difficult to replicate. However, we did not expect such a sharp decline in North American gross gaming revenues, or further degradation in the international currency, compliance, and importation environment.”
In addition to the job cuts, IGT is also taking a number of other steps to ensure the company achieves “long-term growth”.
This extended strategy includes a continued commitment to improve its gaming operations performance through a new licensing deal with Sony, as reported by iGaming Business, and the launch of Powerbucks, a new inter-state progressive jackpot in North America that is due to go live before the end of the fiscal year.
In addition, the firm also aims to preserve its annual research and development investment after reaching an agreement with Action Gaming to solidify its share in video poker, re-engineering its game development process to leverage its social gaming strength, and an increased commitment to the Asia market.