International Game Technology is slashing 700 positions worldwide, roughly 10 percent of its workforce, as the slots giant restructures following last year’s merger with Everi under Apollo Global Management’s ownership.

CEO Hector Fernandez broke the news to staff on Monday, explaining the cuts as a necessary step to streamline operations rather than any reflection on employee performance. The job losses come as Fernandez, who took the helm in December, works to integrate the two companies following Apollo’s $6.3 billion acquisition.

“We examined where we focus, how we operate, and how our structure supports our strategy,” Fernandez wrote to employees. “This work has led to a difficult but necessary step.”

New Leadership, Fresh Strategy

Fernandez brings considerable pedigree to the role, having previously led Aristocrat, though a non-compete clause kept him sidelined for a year before he could start at IGT. He didn’t waste the time. Spent those 12 months crafting a strategic blueprint based on what he calls the five Cs: culture, capabilities, content, commercialisation, and cash-flow creation.

“I couldn’t compete, but I could use my brain,” Fernandez said of his enforced sabbatical. “That’s what I did.”

The restructure aims to eliminate duplication across the merged entity and speed up decision-making. Fernandez has committed to providing severance packages, outplacement support, and transition resources for affected workers.

Global Footprint Under Review

The cuts span IGT’s international operations, but the company hasn’t specified which locations bear the brunt of the reductions. The firm operates facilities across Nevada, including its recently relocated Las Vegas headquarters near Buffalo Drive and Sunset Road, plus additional sites in Texas, California, Oklahoma, and New Jersey. Internationally, IGT maintains a presence across Europe, Australia, India, and Latin America.

The Las Vegas Review-Journal first reported the layoffs but couldn’t confirm how many Nevada-based positions are affected.

Despite the difficult news, Fernandez struck an optimistic note about the company’s future direction. Urged remaining staff to rally together and focus on executing the strategy he’s laid out.

“We came together to build a company that can lead in a rapidly evolving industry, and I remain confident in that opportunity and in the strength of our team,” he told employees.

When Apollo announced the deal to acquire both IGT Gaming and Everi, partner Dave Cohen expressed enthusiasm about working with both companies’ teams to drive the combined business forward. Those words now ring somewhat hollow for the 700 workers facing redundancy as the newly merged operation finds its footing in an increasingly competitive global gaming market.