What happened
Light & Wonder (LNW -0.68%), the digital gaming platform developer previously known as Scientific Games, had a bad turn at the roulette wheel this week. Across the five trading days, the company's stock lost more than 11% of its value, according to data compiled by S&P Global Market Intelligence -- but that isn't an unusual occurrence when a leader steps down.
So what
On Tuesday, Light & Wonder announced a "leadership transition," which is usually corporate-speak for "top manager departing the company."
Sure enough, this pronouncement revealed that CEO Barry Cottle has stepped down, vacating both that post and his seat on the board of directors. The new interim CEO is company insider Matt Wilson, who is also its group chief executive of gaming and executive vice president. He will continue in these roles while serving as stopgap CEO.
For an unspecified length of time, Cottle is to serve as a consultant to Light & Wonder.
The company did not lay out the reasons for Cottle's departure. It did say that its board has begun the search for a permanent CEO. It has engaged a "leading" executive search firm to aid it in the effort.
Now what
In the announcement, Light & Wonder signaled a keep-the-ship-steady approach from its temporary leader.
It quoted Wilson as saying that "With a streamlined organization, sharpened strategic focus and strengthened balance sheet, we are now better positioned than ever to capitalize on the incredible opportunities ahead for the business."
But that doesn't seem to be sitting well with the gaming company's investors. Although Light & Wonder has made some improvements, notably in reducing its heavy debt load, it's booked losses in its last two quarters, and its revenue hasn't yet returned to pre-pandemic levels.
