Gtech to cut 80 jobs

Gtech Holdings announced today it was cutting 80 jobs. The lottery company and co-owner of Turfway Park said it completed a "value assessment," which resulted in a $24 million to $26 million reduction in operating expenses.

The job cuts, of which 20 will be in Rhode Island, and the assessment will cause the company to take a special charge between $4 million and $5 million for the fourth quarter. The special charge means an estimated drop in earnings per share of 7 to 11 cents.

For its fourth quarter ending this month, Gtech (NYSE:GTK) expects its earnings per share to be between 78 cents and 81 cents. Industry analysts estimated the company's earnings would be 78-79 cents per share. For the year, Gtech said it expects earnings between $2.07-$2.10 per share. Analysts expected $2.07-$2.08 per share.

For the previous fiscal year, Gtech reported earnings of 85 cents per share for the fourth quarter and $2.56 cents for the year.