(AsiaGameHub) –   IGT has verified a global workforce reduction of 700 employees, representing roughly 10% of its staff, as a component of business restructuring initiatives aimed at future expansion.

An IGT spokesperson informed iGaming Expert that the job cuts are intended to facilitate the company’s pursuit of sustained growth and to ‘advance with increased focus, agility, and competitiveness’.

The IGT spokesperson stated: “While we progress the merger of the former IGT and Everi operations, we are restructuring our organization to hasten innovation, enhance execution, and prepare the company for long-term growth.

“To facilitate this upcoming stage, we are reallocating resources and refining our operational framework to concentrate on our most promising growth areas and strategic goals, which will affect around 700 employees worldwide, or 10% of our workforce.

“We are grateful for these employees’ contributions and dedication to our company, and we pledge to assist those impacted with severance, career placement assistance, and, when feasible, opportunities in other parts of the company. This strategic repositioning enables IGT to progress with heightened focus, agility, and competitiveness.”

Employee letter

The Las Vegas Review-Journal initially broke the news that CEO Hector Fernandez sent a letter to staff on Monday explaining that layoffs were essential “to match resources with business objectives and optimize operations, guaranteeing we are optimally prepared for future growth”.

It is understood that severance packages will be offered to affected workers, though the precise distribution of job losses across different departments has not been revealed.

As reported by the Review-Journal, Fernandez commented: “During our first all-company town hall in December after I began as the new CEO, I promised we would act swiftly to assess our business and implement changes to fortify it.

“We have honored that pledge over the last few months. We analyzed our areas of focus, our operational methods, and how our organizational design underpins our strategy. This evaluation also compelled us to make some challenging choices regarding our organizational setup, resulting in a hard yet essential measure.”

Fernandez further clarified that the layoffs are not a reflection of employee performance, but instead signify “the structural adjustments needed to function as a unified entity, utilize our collective advantages, and compete with concentration and rigor in a dynamic industry”.

The CEO explained: “We have recently finalized a significant portion of the foundational work necessary for a more robust and competitive organization. The adjustments announced today are part of this initiative to simplify our architecture, eliminate redundancies, and allow us to operate with improved clarity and velocity.”

To generate long-term value and provide superior service to partners, Fernandez indicated that IGT will center its strategy on five Cs: culture, capabilities, content, commercialization, and cash-flow generation. This renewed strategic emphasis is anticipated to help the business seize new growth prospects.

“For those departing from IGT due to this action, we are dedicated to offering severance, outplacement aid, and transition support. For those staying, you might experience sorrow for your coworkers, worry about your teams, or apprehension about what lies ahead. Such emotions are understandable in situations like this,” Fernandez added.

“Our current focus must be on how we proceed collectively: by supporting each other, concentrating on our key priorities, and persisting with the work that will shape our company’s next phase. We united to construct a company capable of leading in a fast-changing industry, and I continue to be optimistic about that potential and the resilience of our team.”

Apollo Global Management purchased the Gaming & Digital division of IGT and Everi Holdings last July for $6.3 billion, establishing a new privately-owned global entity in gaming, digital, and financial technology under the IGT name.

The transaction merged two prominent iGaming companies into a unified organization with three primary divisions – Gaming, Digital, and Fintech.

Upon finalizing the acquisition, it was anticipated that IGT would use its expanded presence to boost efficiency and innovation in both land-based and digital sectors, solidifying its role as a crucial partner for regulated gaming markets and casino operators globally.

iGaming Expert has contacted Apollo for a statement regarding the report of IGT’s plan to cut 700 jobs worldwide.