International Game Technology will lay off 700 workers worldwide, roughly 10% of its global workforce, as part of an initiative to “streamline operations” according to new CEO Hector Fernandez.
The cuts were first reported by Las Vegas Review-Journal (LVRJ) overnight, which referenced an internal letter sent by Fernandez by to IGT employees on Monday in which he stated changes were “required to align resources with business priorities and streamline operations, ensuring we are best-positioned for future growth.”
Fernandez – who joined IGT in December after it was acquired by Apollo Global Management alongside Everi – added, “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. 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.”
The cuts are not “performance driven,” he added, 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.”
LVRJ noted that there is no clarity yet on whether the layoffs would be primarily focused on IGT’s Las Vegas base or distributed evenly across the globe.
However, Fernandez did confirm that the company was preparing severance packages to affected workers.
“For those leaving IGT as part of this action, we are committed to providing severance, outplacement support and transition resources,” he said.
“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.
“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.”
RelatedPosts
