LAS VEGAS, NV - International Game Technology says it's taking actions to re-align its cost structure for long-term earnings growth.
According to a news release, to responsibly address the challenges facing the gaming industry and their related impact on IGT, the company is enacting cost-cutting measures including the
reduction of its global workforce by 7-percent for cost savings of $30
million in the current fiscal year. That 's about 350 employees worldwide. IGT says severance packages are part of the layoffs.
“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,” said Patti Hart, IGT CEO.
According to the news release, in addition to the actions mentioned above, IGT is taking a number of actions to position for long-term earnings growth:
...Continued commitment to improve its gaming operations performance
... Secured a new global licensing agreement with Sony, which provides IGT with expanded franchise rights for Wheel of Fortune through the year 2024
... Launching Powerbucks, a new interstate progressive jackpot, in Nevada, New Jersey, South Dakota, and Canada expected by the end of the fiscal year
... Preserving its $200 million annual R&D investment, to maintain industry leading innovation
... Reached a new agreement with Action Gaming to solidify IGT’s 90-plus percent market share in video poker
... Re-engineering its game development process to leverage its strength in social gaming to improve land-based game performance
... Increasing its commitment to the Asian market