Reno Jobs with IGT Cut

A leading gaming company is planning to cut more Reno jobs. To learn about Reno jobs, click here.

International Game Technology, a company that makes gambling machines, recently announced its plan to cut another 200 jobs. The cuts are being made to help the company boost its efficiency amidst the tumbling economy.

The company already cut 300 jobs during November 2008, and total personnel cuts during 2008 totaled more than 10 percent of the IGT's global workforce. The company now has a little more than 5,000 employees, according to an article by MSNBC.

"This effort is geared to better align IGT supply chain capacity and resources to the demands of the market," Tony Ciorciari, executive vice president of operations for IG, said in the article. "This restructuring effort is targeted to be complete by April."

Most of the previously cut employees were laid off or received buyouts. Those positions were cut at the company's headquarters. IGT, which is the world's largest maker of slot machines and casino systems, expected to lost about 500 workers from a total of 5,400. About 3,000 workers are currently employed at the headquarters.

IGT's manufacturing functions are mainly based in Reno with some related activities taking place in Las Vegas. While the job cuts have some employees worrying about their future, the company has no plans to move or close anytime soon.

"We have no plans to change existing charters for these facilities," Ciorciari added. "Reno is and will continue to be the main headquarters of our manufacturing function."

The company has blamed the slowing economy and an "unprecedented" decline in casino play for its lower third-quarter earnings. It also reduced its profit forecast for the rest of the year and into early 2009 to a range of 30 cents to 35 cents per share from a range of 35 cents to 40 cents per share.

Reno's Jobless Rate Remains Competitive

Although unemployment in Nevada rose in March from 5.7 percent to 5.8 percent, Reno’s jobless rate remained steady but still higher than the state and national average. Approximately 14,500 residents were without work, which is 6.2 percent of the populace. Being unemployed in the area can be particularly difficult considering that a recent report found that housing in the area doesn’t offer much in the area of affordability.

According to the study conducted by Colorado College, a single individual with a minimum wage Reno job would have to work around 120 hours a week to afford what is considered a fair-market rent in the area. The report found that only about 21.2 percent of the homes in the area are in the price range that those with the city’s median income can afford. Still, this is better than Las Vegas, where only 18.9 percent of homes are found to be affordable for those who receive an average salary.

Charles Horsey, the administrator of the Nevada Housing Division, believes that the results of the report are slightly off due to the fact that data from the beginning of the downward turn in the housing market was used. He says that “with the steep downturn in housing prices, there is a much greater stock of homes in the affordable range now than there have been prior to that."

With the economy suffering, tourism and casino jobs in Reno may soon be more difficult to find. A recent report by the Gaming Control Board on casino earning found that clubs in Reno were down by 3.9 percent. Control Board analyst Frank Streshley says that this is a direct result of economic woes. “It goes back to a soft economy,” he says. “People are tighter with their money and their spending.”

Casino profits don’t only effect those who hold Reno jobs in tourism; they also effect the local government. The lack of spending has resulted in a deficit in taxes collected on gambling, which has area officials considering more budget cuts.

Previous budget cuts have required the government to cut funding for projects. According to Andrew Clinger, the state’s budget director, if Nevada has to tighten its belt any more, then Reno jobs provided by the government sector will be subject to layoffs. The possible decrease in staffing numbers is expected to be spread throughout the state in hopes of balancing the budget.

Reno Job Search

More people were able to find jobs in Reno, Nevada in February than in the previous month. The area unemployment rate dropped from 6.6 percent to 6.3 percent. Approximately 217,800 people has Reno jobs while about 14,600 were out of work.

Reno jobs in retail decreased, as did those in financial activities in February. Employment in education-health services, professional business services, and manufacturing was up. There was also an increase in those who held government jobs in the area, but this may not last long.

It was recently announced that by mid-2009 analysts estimate that there will be a Nevada revenue deficit of almost $800 million if things continue as there are. Governor Jim Gibbons' press secretary, Ben Kieckhefer, says that "he will have to find ways to tighten the state's belt."

In order to soften this blow, Gibbons is expected to soon review budget cut plans that go beyond the 4.5 percent cuts he imposed in January. Although doing away with government jobs in Reno and elsewhere statewide has been avoided at this point, it is still consider an option to decrease the deficit.

If it is decided that doing away with jobs is the best way to decrease the budget then a good number of individuals could soon be without work, although Reno's portion of the potential cuts is still unknown. In this case, those who stand to lose their state government job would be wise to look for the comparable federal positions, since the benefits are often similar.