Ainsworth Game Technology announced last month that it will save an estimated AU$10 million per year after the elimination of 107 jobs. The cost-saving measure was taken in response to the Covid-19 pandemic, which cost the company an AU$43 million loss after customers in all major markets suspended operations.
Inside Asian Gaming reported that Ainsworth’s Latin America business took the biggest hit, declining 42 percent year-on-year to AU$43 million. The North American market fell 37 percent to AU$72 million, while Australia and the rest of the world declined 27 percent to AU$35 million.
The workforce reductions were announced last month, after Ainsworth released its FY20 financial results. The company confirmed that it has “implemented a series of cost-saving measures to ensure the 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.”
Ainsworth CEO 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.”
According to Asia Gaming Brief, despite the upheaval. Ainsworth has seen progress in its online offerings. The Australia-based company reported an adjusted net loss for the fiscal 2019/2020 year of AS$34 million (US$24.6 million), with revenue down 36 percent to $149 million.
In the online division, the company booked revenue of $4.6 million, compared with $4.2 million the prior year. The group said it is now live with several leading operators in New Jersey, while it is in discussions with established operators in other U.S. states that have authorized online gambling.
