IGT Lays Off 25 Employees
International Game Technology (IGT: 17.00 +0.53%) has announced this week that they will close their Reno based cabinet shop within the next 60 days.
The shops 25 employees were officially notified on Friday, although they were warned about the pending layoff late last year, according to the company’s spokeswomen, Julie Brown.
The layoffs are apart of the gaming companies attempt to cut overhead cost, by outsourcing the shop’s sheet metal work, wood working and lamination.
Negotiations for outsourcing are underway with three other Reno Business.
“Our goal is to continue to look for operational efficiencies and we determined that it was more efficient to outsource this function,” Brown said.
Despite the job losses, IGT remains active with its growth and has openings for 27 new employees in other departments including software engineers.
“We are hiring. We are evolving for the future,” Brown said.
IGT saw a 20% increase in profit at the end of its first fiscal 2010 quarter ending December 31, 2009, however the boost is contributed mainly to cost cutting initiatives.
The provider of slot machines and gaming solutions to the casino industry expects to cut another $100 million during the 2010 fiscal year according to a report from JP Morgan Chase and Co.
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