Australia ASX-listed gambling technology group Aristocrat Leisure has confirmed that it will stand down 1,000 members of staff as it seeks to mitigate the impact of COVID-19.
In a statement, Aristocrat confirmed that the majority of those that will be stood down are based in the US, where the company has the majority of its staff, but has also stood down “a few hundred” workers in Australia.
Aristocrat CEO & Managing Director, Trevor Croker, said: “We are very sensitive to the impact of necessary cost reduction measures on our people, and will work hard to support them through this difficult time consistent with our ‘people first’ approach. We believe that these changes will help maximise opportunities for Aristocrat’s dedicated and talented people over the longer term.
“We will continue to do everything we can to restore momentum in our land-based business as quickly as possible recognising the importance of continuing to develop and deliver game content during this period.”
Alongside the reduction in staff numbers, Aristocrat will also implement temporary pay cuts for 1500 members of staff, which will last until September.
The majority of pay cuts range from 10% to 20%, while Croker will also take a 30% cut in his base salary. In total, these cost reduction initiatives are expected to deliver approximately $100 million in identified savings over the remainder of the financial year ending 30 September 2020.
Croker continued: “These changes, and other prudent steps we are taking as part of our COVID-19 response, will deliver important operational and financial flexibility, focus and efficiency through this period of uncertainty.”
“We are highly focused on protecting and leveraging our strategic advantages, including industry-leading Design & Development and effective User Acquisition investment, which Aristocrat will continue to prioritise.
“In land-based, we will ensure the business is ideally poised to partner our customers and grow as conditions improve, while in digital we remain fully focused on executing our growth plans and maximising opportunities at this time.”