IGT has confirmed that 700 workers globally, approximately 10% of the company’s workforce, will be made redundant as part of measures for business realignment and future growth.
iGaming Expert was told by an IGT spokesperson that to help the business pursue long-term growth and to ‘move forward with greater focus, agility and competitiveness’, layoffs had to be made.
The IGT spokesperson said: “As we advance the integration of the legacy IGT and Everi businesses, we are aligning our organisation to accelerate innovation, strengthen execution and position the company for long-term growth.
“To support this next phase, we are aligning resources and streamlining our operating model to focus on our highest growth opportunities and strategic priorities, impacting approximately 700 employees globally, 10% of our workforce.
“We thank these employees for their contributions and service to our organisation and we are committed to supporting affected employees with severance, outplacement services, and, where possible, opportunities elsewhere within the company. This strategic realignment positions IGT to move forward with greater focus, agility and competitiveness.”
‘Difficult but necessary step’
As first reported by The Las Vegas Review-Journal, IGT Chief Executive Officer Hector Fernandez distributed a letter to employees on Monday stating that layoffs were necessary “to align resources with business priorities and streamline operations, ensuring we are best-positioned for future growth”.
Severance packages are reported to be provided to workers facing redundancy, but it has not been disclosed exactly how many layoffs will occur across each area.
According to the Review-Journal, Fernandez said: “When we met in December for our first company-wide 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 organisation is structured, and this work has led to a difficult but necessary step.”
Fernandez added that no “performance-driven” decisions have been made regarding the layoffs, but they reflect ”structural alignment required to operate as one company, leverage our combined strengths and compete with focus and discipline in a changing industry”.
The CEO stated: “In recent months, we have completed much of the foundational work needed for a stronger, more competitive organisation. 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.”
Seeking to create long-term value and deliver high-quality service to its partners, Fernandez noted that IGT will focus on five Cs: culture, capabilities, content, commercialisation and cash-flow creation, with ambitions to capitalise on new growth opportunities.
“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,” Fernandez continued.
“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.”
In July last year, the Gaming & Digital division of IGT and Everi Holdings was acquired by Apollo Global Management for $6.3bn, developing a new privately held global player in gaming, digital and financial technology under the IGT brand as a result, with three key business units – Gaming, Digital and Fintech.
When the deal was completed, it was thought that IGT would drive efficiencies and innovation across both land-based and digital verticals through its enlarged footprint, bolstering its role as a global partner to regulated gaming markets and casino operators.
SlotBeats has reached out to Apollo for comment on the report that IGT will lay off 700 workers worldwide.