Australia-based manufacturer and supplier of gaming solutions, Ainsworth Game Technology has decided to bite the bullet and purge as many as 107 positions to help mitigate a $43 million AUD loss due to the turn down in business related to the Covid-19 pandemic.
Recently the company Ainsworth Game Technology which is a subsidiary of the Novomatic Group of Companies announced it will remove 67 redundancies and 40 additional roles, comprising 23 Australia-based positions and 44 in the Americas. It is estimated the move will save about AUD$10 million annually. Founded in 1980, Novamatic is the largest conglomerate of gaming companies in the world, made up of over 30 distinct entities.
The market declines have been felt all over the globe with many online gambling service related companies experiencing a decline in revenues. The market in Latin America was severely impacted with a 36 percent year-on-year skew in revenues to AUD $149 million, with the biggest year-on-year decline, 42 percent to AUD $42 million. The North American market also witnessed a 37 percent slip to AUD $72 million while a 27 percent fall to AUD $35 million was seen in Australia and the rest of the world’s gambling market.
Ainsworth has stated the savings will ensure the twenty five year old firm “can endure a protracted downturn.” Adding, “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 AUD $10 million, which is expected to carry forward into FY21.”
Lawrence Levy, Chief Executive Officer for the Ainsworth company, commented on the decline due to the pandemic, “While the Covid-19 pandemic hit our industry hard, we moved quickly to protect Ainsworth.” Levi added, “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.”
