IGT lays off 700 employees to 'streamline' global operations.

Slot machine manufacturing giant International Game Technology – IGT is laying off 700 workers worldwide, about 10% of the company’s workforce, the company’s top executive announced on Monday (23), reveals a report by the Las Vegas Review Journal.

In a letter distributed to employees, CEO Hector Fernandez said the reduction “is necessary to align resources with business priorities and streamline operations, ensuring we are better positioned for future growth.”

The company did not disclose how many of the layoffs affect workers in Nevada and Las Vegas, the company's new corporate headquarters after New York-based Apollo Global Management Inc. acquired it from an Italian lottery group, Gtech Holdings, in July for $6,3 billion.

The layoffs come after a general meeting in December, in which the new CEO told employees that he would act quickly to assess the company and implement a strategy to strengthen IGT.

“When we met in December for our first all-mandated meeting since I took over as CEO, I said we would move quickly to assess our business and make decisions to strengthen it,” Fernandez said in his letter. “Over the past few months, we have kept that commitment. We have examined where we focus, how we operate, and how our structure supports our strategy.”

"As part of this review, we also had to make some difficult decisions about how our organization is structured, and this work led to a difficult but necessary step," he said.

Fernandez said the layoffs are not “performance-driven,” but “reflect the structural alignment needed to operate as a company, leverage our combined strengths, and compete with focus and discipline in a changing industry.”

“Over the past few months, we have completed much of the fundamental work needed for a stronger and more competitive organization,” he said. “The changes we are announcing today are part of that effort to simplify our structure, reduce duplication, and allow us to move with greater clarity and speed.”

Fernandez said that severance packages are being provided to workers facing layoffs. He stated that his guideline of adhering to the 5 C's in business – culture, capabilities, content, marketing, and cash flow creation – are his main drivers of long-term value.

“For those leaving IGT as part of this action, we are committed to providing severance pay, outplacement support, and transition assistance. For those who remain, you may feel sadness for your colleagues, concern for your teams, or uncertainty about the future. These feelings are natural at times like this,” he said.

“What matters now is how we move forward together: supporting each other, 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 this opportunity and in the strength of our team.”

IGT, a leading manufacturer of slot machines best known for its Wheel of Fortune series of games, also has a business in systems, financial technology, slot machines, and online cabinets—the hardware that houses a typical slot machine.

“The leaner IGT will continue to drive innovation, execute our strategic priorities and deliver the high-quality service our customers expect,” said Fernandez.