Gtech Holdings Cuts Jobs, Closes Offices

Gtech Holdings Corp., the world’s largest seller of lottery systems, said it cut about 175 jobs and will take $27.5 million in charges against earnings as it tries to boost its lagging share price. Gtech said the job cuts equal about 4% of its work force. The company also plans to close two offices, sell corporate aircraft and cancel some consulting agreements. West Greenwich, R.I.-based Gtech cut its earnings forecast last week for its fiscal year ending Feb. 24 to between $2.07 and $2.12 a share from between $2.25 and $2.30. The company expects the job and expense cuts to save $24 million to $26 million a year starting in fiscal 2002. The charges amount to about 80 cents a share for the second quarter ended Saturday, Gtech said. The company reported net income of $21.8 million, or 58 cents, in the year-ago quarter. The company plans to release its quarterly results Sept. 20. Gtech shares fell 38 cents to close at $17.13 on the NYSE.