In response to its FY20 financial results, Australia-based manufacturer and supplier of gaming solutions, Ainsworth Game Technology (AGT) (AGI:ASE), has decided to eliminate 107 roles to help mitigate the impact the COVID-19 pandemic has had on the company’s bottom line.
Revealed on Thursday, the Novomatic AG subsidiary estimates that by eliminating 67 redundancies and 4o additional roles, which comprise 23 Australia-based positions and 44 in the Americas, it will save approximately AU$10 million a year, according to the source.
“While the COVID-19 pandemic hit our industry hard, we moved quickly to protect Ainsworth.”
The NSW-headquartered company’s FY20 financial results (PDF) reportedly took a AU$43 million hit after customers in all major markets halted operations in response to the ongoing, worldwide health crisis.
Multi-market revenue declines:
According to the news agency, those sobering results included a 36 percent year-on-year slant in revenues to AU$149 million, with the biggest year-on-year decline, 42 percent to AU$42 million, suffered in the Latin American market. Also falling was the North American market, which saw a 37 percent slide to AU$72 million while a 27 percent decline to AU$35 million was seen in Australia and the rest of the world.
According to Ainsworth, the cost saving measures will ensure the 25-year-old company “can endure a protracted downturn.
“In addition to voluntary salary and other overhead reductions, the group has reduced employee numbers by eliminating 107 roles at an annual cost saving of approximately AU$10 million, which is expected to carry forward into FY21.”
Commenting on the effects of the coronavirus, Chief Executive Officer for the Australian slot maker, Lawrence Levy, said…
“While the COVID-19 pandemic hit our industry hard, we moved quickly to protect Ainsworth.
“We took proactive measures to streamline our overheads and restructure previous financing arrangements to ensure we can endure the current downturn.
“Ainsworth is well positioned as customers across our markets look to recover from the effects of the pandemic.”
Meanwhile, earlier this year, Ainsworth announced its American subsidiary would acquire Montana-based content specialist MTD Gaming Incorporated for up to $13 million, half of which is contingent upon the “successful delivery of financial targets and contract renewals.”
CEO Levy, at the time, said that the acquisition “marks another positive step” in transitioning it towards “growth and improved profitability.”