Slot maker cutting costs

Wednesday, March 26, 2003 | 9:29 a.m.

SYDNEY, Australia -- Aristocrat Leisure Ltd., the world's second-largest slot machine maker, is cutting costs at its Australian operations by forcing workers to take leave, the Australian Financial Review reported, citing unidentified people close to the situation.

The cost-cutting measure comes as the group faces pressure in its key markets in Australia and the United States, the newspaper said. Managing Director Des Randall will brief a special board meeting later this week on the state of the company's Las Vegas-based U.S. operations.

Many workers at Aristocrat's manufacturing operations were forced to go on leave, some for several months, because there was no work to do, the newspaper said, citing employees it didn't identify. The company's shares have slumped 63 percent this year.

The forced leave results from a build-up of slot machines that had been made but not sold when an order in South America fell through, the newspaper said. The order was for about 3,000 machines and worth about A$16 million ($9.5 million) after tax, the newspaper said.

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