Ainsworth Game Technology says it will save around AU$10 million a year after eliminating 107 roles as part of cost saving measures aimed at helping the company navigate the challenges of COVID-19.
The full extent of workforce reductions was revealed on Thursday as Ainsworth released its FY20 financial results, which saw it slip to an AU$43 million loss after customers in all major markets suspended operations in response to the pandemic.
Those results included a 36% year-on-year decline in revenues to AU$149 million, with Latin America suffering the biggest year-on-year fall of 42% to AU$43 million. The North American market fell 37% to AU$72 million while Australia and the rest of the world declined 27% to AU$35 million.
In response, Ainsworth said 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.”
The eliminated roles include 67 redundancies and another 40 eliminated roles, of which 23 are in Australia and 44 in the Americas.
“While the COVID-19 pandemic hit our industry hard, we moved quickly to protect Ainsworth,” said CEO Lawrence Levy.
“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.”