IGT to Cut 7% of Workforce - KTVN Channel 2 - Reno Tahoe Sparks News, Weather, Video

IGT to Cut 7% of Workforce

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Casino game machine company, International Game Technology announced Tuesday afternoon it is taking actions to re-align its cost structure for long-term earnings growth.

In a statement, IGT says it will reduce "its global workforce by 7% to realize expected cost savings of $30 million in the current fiscal year and an estimated $50 million on an annual run-rate basis."  There's no word yet on if - or how many - positions will be affected at the company's Reno headquarters.

The Las Vegas company has 5,000 employees. About 350 employees will be affected by Tuesday's announcement.

"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.

Despite the measures, IGT says it will continue to increase its commitment to the Asian market, and has already secured a new global licensing agreement with Sony. By the end of the fiscal year, IGT is expected to launch Powerbucks, an interstate progressive jackpot in Nevada, New Jersey, South Dakota and Canada. 

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