Home subscribe manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Sat Sun Mon Tue Wed Thu Fri

Business
Sep. 17, 2008
Copyright © Las Vegas Review-Journal

IGT to impose layoffs

Chairman cites need to cut costs, restructure

By HOWARD STUTZ
REVIEW-JOURNAL

Slot machine giant International Game Technology said Tuesday it will lay off a yet-to-be determined number of employees by Jan. 5 due to the troubled economy.

In an e-mail to employees, IGT Chairman and Chief Executive Officer TJ Matthews said the number of layoffs will be based on how many workers accept a voluntary separation program that was introduced last week. IGT spokesman Ed Rogich said roughly 500 employees, age 55 and over, were offered buyouts.

Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

Most Popular Stories
  • Permits sought to build world's largest hotel in Las Vegas
  • INSIDE GAMING: Uncles and ain'ts: Rec bettor sours on Vegas
  • ECONOMIC WOES: Airport official outlines cutbacks
  • INTERNATIONAL CONSUMER ELECTRONICS SHOW 2009: High tech in low spirit
  • Australian billionaire moves closer to Cannery purchase
  • Casino in Sparks sold
  • LV Sands, Elad deny report of New Frontier land deal
  • USA Capital investors blame courts
  • What shows here, stays here
  • Ex-Station exec named to gaming center post



    • "As we continue efforts to reduce expenses and restructure the company to maximize efficiencies in light of a strained economic environment, it has become evident that we must conduct an involuntary reduction in our work force in addition to our other efforts," Matthews said in the e-mail.

    IGT employs roughly 5,400 workers worldwide, including 3,000 employees at its corporate headquarters in Reno. At the company's secondary headquarters in Las Vegas, IGT employs about 1,000 workers.

    IGT, the gaming industry's leading slot machine manufacturer, has hit rough times this year. Profits are weaker than they were a year ago, the company's chief operating officer resigned earlier this month, and IGT's stock price is down more than 60 percent from its 52-week high of $49.41 on Feb. 26. Shares of the company closed Tuesday at $18.81 on the New York Stock Exchange, up 2 cents, or 0.11 percent.

    Rogich said IGT is going through a strategic review of all divisions to see where cuts can be made. The first step is to gauge response to the buyout program.

    "Part of the process is to make people aware of our intentions that there may be further cuts," Rogich said. "We're trying to be up-front with employees and give them all the information they will need."

    Macquarie Capital gaming analyst Joel Simkins said he was not surprised by news of the impending layoffs. He said the slot machine maker has about 1,200 workers in engineering, an area he said could be reduced.

    IGT has also spent millions on server-based gaming, which may not be introduced to casinos as quickly as hoped. IGT spent $76 million in June to acquire a European slot machine rival as part of its server-based gaming efforts.

    "The company needs to get leaner," Simkins said. "There are a lot of incremental expenses that can be cut."

    Matthews told IGT workers the company was not closing its Reno headquarters nor are the layoffs focused in one department. A decision regarding the layoffs is expected to be made by November with the jobs being eliminated in January.

    "My hope is that through these efforts, we can stabilize our spending to be aligned with our revenue forecasts and be in a position to weather the near-term uncertainty that is prevalent in our industry and our economy in general," Matthews said.

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.



    Leave Your Comment 30 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Ex IGT wrote on December 15, 2008 03:27 PM: Sounds like IGT are upholding any/all non competes that laid off people signed. My neighbor tells me they forced a gaming company in town into not talking to him about a possible job with them. Is that even legal?


    Penelope wrote on December 10, 2008 12:53 PM: I don't understand why all these corporations are sellng out to China. We have nothing but problems with their goods once they get here.
    China is the least trusted country yet everyone wants to do business over there. It's the corporate greed that put us in these economic times and I really want to thank you for laying me off just when the economy really crashed. But hey, there's always China for you guys to fall back on huh? What do we have? A street to live on. Again, thanks for all your corporate greed and the country you support. China. So much for the USA but it's okay, I'm sure China will take care of you just like they take care of all their babies over there and everywhere.


    Joe wrote on November 07, 2008 10:13 AM: My friend just came back from Reno, he saids a department call casino services has 5 managers and 5 supervisors, a vice-president and a president. Check this out they 25 employees, are they going to cut the fat? probably not, they are going to cut the little people as usual.


    Can't say wrote on October 06, 2008 09:38 AM: I agree. Management got them into the mess, so they need to lay THOSE decision making people off. The blue collar workers just do as they are told. Don't make them suffer TJ. In fact, just 1 million dollars of TJ's OWN bonus could save tons of people's jobs, if he were just to "donate" some of his bonus' back to the company that gave it to him in the first place.....


    Keep Jobs in the USA wrote on September 21, 2008 02:07 PM: My friend and neighbor is in the Engineering department at IGT. He tells me that they have 30 or more contractors from India currently in the shop with more to come. Also, they have immediate plans to hire 300+ engineers to work in the new Beijing China office of IGT. It's sad that they plan to expand so largely and quickly into China at the expense of American families.


    Sharon wrote on September 18, 2008 11:17 PM: To ExEmployee:

    I have friends at IGT and they have said the same thing. Too many chiefs and not enough indians. Now they are going to lay off the indians and the chiefs will be left. So sad. I am so sad for the ones that can't get any social security benefits and have to start over. They have homes, cars, kids in college, etc. I hope they are getting a good severence pay because who knows how long it will take them to find a new job and yet still have to pay their rent, car, food, college, utilites and gas (to get around to go to interviews). Hey TJ why don't look at your top management and engineers first before you lay off the people that have been good and loyal workers for the company and deserve better?????


    Kerri wrote on September 18, 2008 10:50 PM: To: Whiny LV
    If this TJ is a great man and a strong leader why didn't he see what was happening? Probably didn't see it coming because of the bonus deals and stock options he got and was spending. Isn't his job to look out for what is best for company and the employees and not stuffing his pockets?

    I just read that IGT has 1,200 engineers!!! Do they really need that many people who can't even come up with better games? How about new games? I say start there and not lay off the people that are 55 and up.



    well wrote on September 17, 2008 06:20 PM: So what happened to a much heard about better economy in the second half of 2008.


    K2 wrote on September 17, 2008 05:43 PM: It's getting harder to cover up the corruption of upper management. What used to pass for a wink and a nod is now a full blown explosion and everyone knows this. Bleed the company dry and when there is no more blood, torch it and collect the insurance. What ever happened to integrity?


    well wrote on September 17, 2008 05:29 PM: So what happened to a much heard about better economy in the second half of 2008.


    Read All Comments