Yahoo Finance International Game Tech cutting 350 jobs
IGT says it will cut 350 jobs; pares guidance on lower North American revenue, int'l struggles
NEW YORK (AP) -- Slot machine maker International Game Technology said Tuesday it will eliminate 7 percent of its jobs, or about 350 positions, in response to difficult industry conditions.
IGT said the cuts will save it $30 million in the current fiscal year and $50 million in future years. The company also lowered its annual profit guidance, saying North American gambling revenue has declined more steeply than it expected, and its international business is being hurt by weakening currencies and other problems.
The stock dropped $1.10, or 7.4 percent, to $13.75 in after-hours trading after gaining 5 cents during regular trading.
The Las Vegas company has about 5,000 employees.
IGT now expects to earn between $1 and $1.10 per share in adjusted income from continuing operations, down from $1.28 to $1.38 per share. For the second quarter, the company expects to earn 17 to 19 cents per share.
According to FactSet, analysts forecast income of $1.20 per share for the year and 29 cents per share in the second quarter. The company's fiscal year ends in September.
IGT said it is working to position itself for long-term growth. It said it has reached a new global licensing agreement with Sony that gives it greater franchise rights for "Wheel of Fortune" games through 2024, and it said a new deal with Action Gaming will solidify its market share in video poker.
