Global gaming product developer Scientific Games has outlined a series of cost-saving measures aimed at ensuring the company can navigate the coronavirus pandemic, including a 100% reduction in pay for CEO Barry Cottle and 50% reduction for the rest of the executive leadership team.
Scientific Games has been one of the hardest hit major industry suppliers in recent months, with its share price plummeting by more than 85% from US$30.24 on 12 February to a low of US$3.96 on 18 March. It currently sits at US$8.89 as of Nasdaq close.
“The Company is instituting a number of cost-savings measures to ensure stability for team members and protect the operations of the Company,” the company said in an update on its COVID-19 response.
“Some of these measures include workforce hour and pay reductions to preserve as many jobs as possible and furloughs for those support roles that have seen a decrease in industry work.”
Scientific Games is also establishing a Hardship Relief Fund to support employees impacted by temporary furloughs, with Cottle and other executives said to have made contributions to the fund.
“Like many others, our industry is facing unprecedented challenges from the widespread impact of the COVID-19 outbreak,” the CEO said.
“We are working around the clock to take care of our employees, customers, shareholders and other key stakeholders in these difficult times, while providing uninterrupted products and services to those customers who continue to operate.
“Thankfully, we came into this year with a very strong liquidity position, including substantial capacity under our revolver, and also refinanced our debt, extended our major maturities and lowered our interest expense. We have a diverse portfolio of assets, product and services that uniquely position us to weather this crisis.
“We are taking a variety of actions to help ensure that we meet the demands of this outbreak and are ready when the industry begins to recover. I am confident that the measures we are taking now will prepare us to come out of the crisis even stronger than before. And, I have never been prouder to lead a team where everyone is stepping up to help each other, our partners and our Company.”