Las Vegas Sun

March 19, 2024

Gaming supplier to lay off 200 workers

Manufacturing job losses will mostly affect Reno, company says

Hard times in the casino industry are resulting in more job losses -- this time at gaming supplier International Game Technology.

The slot machine and casino systems supplier today said it will cut about 200 manufacturing-related jobs. This follows a workforce reduction launched in November at IGT of about 8 percent, or 460 jobs.

Gaming industry suppliers are under pressure as casinos, themselves struggling to maintain profits, are ordering fewer machines. And several planned casino projects that would have needed machines by the thousands have either been canceled or are on hold.

Ed Rogich, the company's vice president of marketing, said most of the cuts would be in Reno. Exact numbers for each of the company's locations have not been determined.

"Most of this will be related to Reno -- some Las Vegas, but mostly Reno,'' he said.

Most of IGT's manufacturing is done in Reno, with the Las Vegas operation handling sales, parts distribution, compliance matters, casino services, systems support and development and the refurbishing of some equipment.

Rogich said the company would offer voluntary separation packages to employees, which would reduce the number actually laid off.

He said IGT last year employed some 5,600 people worldwide, including about 1,000 in Las Vegas.

The company Jan. 22 reported a decline in its first fiscal quarter profit and shipments of its products. IGT, based in Reno, earned $65.7 million or 22 cents per share in the period ended Dec. 31 vs. a profit a year earlier of $113.7 million or 36 cents per share. Product sales declined 8 percent to $288.3 million

"We are focused on optimizing our margins so that our business is well-positioned to benefit from the future opportunities that will arise when economic conditions improve," Pat Cavanaugh, executive vice president and chief financial officer, said in a statement today. "With that goal in mind, we will continue to look at all aspects of our business to improve efficiencies and reduce ... expenses where appropriate."

Including those announced today, total staff reductions in the current fiscal year represent just over 10 percent of the total workforce worldwide, which now totals just over 5,000 employees.

"This effort is geared to better align IGT supply chain capacity and resources to the demands of the market," said Tony Ciorciari, executive vice president of operations for IGT. "This restructuring effort is targeted to be complete by April."

"We have no plans to change existing charters for these facilities (Reno and Las Vegas)," said Ciorciari. "Reno is and will continue to be the main headquarters of our manufacturing function."

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