The post IGT Laying Off 10% of Its Workforce as New CEO Moves Fast After $6.3bn Merger appeared first on Vegas Slots Online News.
Unfortunate news
International Game Technology (IGT), the creator of iconic slot games like Cleopatra, Da Vinci Diamonds, and Golden Goddess, has revealed that it is laying off 10% of its global workforce. The Nevada-based company said about 700 jobs will be lost.
part of a wider reorganization to streamline operations and reduce duplication
New CEO Hector Fernandez announced the move on Monday as part of a wider reorganization to streamline operations and reduce duplication. IGT has offices all around the world, including in London, Las Vegas, and Rome.
The company has been a trailblazer in the global gambling industry since the 1970s. Some highlights include effectively launching the video poker market, offering one of the first area-wide progressive jackpot slots, and introducing branded content through slots like Wheel of Fortune.
Explaining the decision
In the letter to IGT workers, Fernandez said that the aim of the decision is to be “best positioned for future growth.” The company has not indicated publicly in what areas jobs will be cut.
Fernandez explained that senior executives have quickly evaluated the business since a company-wide town hall meeting in December. They looked at the various areas of focus, the way the company operates, and how the current structure supports the overall strategy. He said one of the conclusions was the layoffs, which are a “difficult but necessary step.”
He emphasized that the layoffs are not performance related. Instead, IGT’s management wants to leverage its strengths and to “compete with focus and discipline in a changing industry.”
IGT isn’t the only major gaming supplier to announce layoffs recently. Games Global, which lists massively popular slots like Mega Moolah, Immortal Romance, and Thunderstruck II in its portfolio, announced in October that it was letting go of an unspecified number of people after re-evaluating its business.
Changing ownership
Private equity firm Apollo Global Management bought IGT’s gaming business and Everi Holdings for $6.3bn in July from the Italian lottery company GTECH Holdings. This was one of the largest acquisitions in the history of the gambling supplier industry.
At the time of the deal’s completion, Apollo said it planned to combine the two companies, encompassing IGT’s gaming elements and Everi’s payment solutions and casino technology.
Hector Fernandez became the new CEO of the joint company in December, after previously holding the top job at Aristocrat Gaming. The new IGT business is split into Gaming, FinTech, and Digital divisions.
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