Harrah's responds to slowdown with labor reductions - Business

PRINT THIS Popular

Feb. 16, 2008
Copyright © Las Vegas Review-Journal

Harrah's responds to slowdown with labor reductions

Company makes layoffs, cuts employee hours

By ARNOLD M. KNIGHTLY
REVIEW-JOURNAL

Harrah's Entertainment has laid off workers and reduced hours at many of its properties around the country, citing the slowing economy, the company confirmed Friday.

The current round of layoffs includes nearly 100 workers at its eight local properties, 30 workers in Illinois and smaller numbers at its properties throughout the country.

Most Popular Stories

Fraud with Portent

Debt-ridden casino operators told to expect pressure

REAL ESTATE: Las Vegas home prices stabilize as threat of foreclosure flood wanes

GAMING COMPANY EARNINGS: Station drops $455.4 million

THE STRIP: License approved for Aria

GLOBAL GAMING EXPO: Recession over? Don't bet on it

THE STRIP: License backed for Aria

Union wants insiders to help pull Station from bankruptcy

Foreclosure wave continues

INSIDE GAMING: Missouri outburst hurts Lee, Pinnacle

"It depends on the property; it depends on how business is there," Harrah's Entertainment spokesman Gary Thompson said. "Hopefully, we'll be able to get those people back as soon as possible."

The gaming giant owns the Rio, Paris Las Vegas, Bally's, Bill's, Flamingo, Imperial Palace, Harrah's and Caesars Palace in Las Vegas.

Harrah's owns four properties in Northern Nevada, one in Laughlin, and 20 more in eight states outside Nevada. It also manages three American Indian casinos around the country.

"If business continues to be less than optimal in some regions, we're going to have to adjust our costs there," Thompson said.

Harrah's confirmation follows similar reports by Station Casinos and MGM Mirage that the economic downturn is causing layoffs, work-hour reductions and hiring freezes of a few positions.

Both Harrah's and Station Casinos said the labor-cost reductions are not related to the recent buyouts of their companies by private-equity companies.

The economic slowdown in gaming comes as consumer confidence ebbs because of the local housing crisis, said Brian Gordon, a principal at Applied Analysis, a Las Vegas financial consulting firm.

"The soft economic conditions are impacting all business sectors and all geographies," Gordon said. "The Las Vegas gaming sector is feeling the downswing in the overall economy and is responding accordingly."

Boyd Gaming Corp., which owns nine casinos in Clark County and a few more in five states, declined to say if the company was making any labor adjustments, citing that it is a publicly traded company.

"There is no question these are tough times," Boyd spokesman Rob Stillwell said. "We manage our business very closely. We are always working to keep expenses in line with business levels, and today is no different than previous times."

A worker at one of the company's properties said Friday that "vacation relief and on-call people are dying for something to do" because of a slowdown in business.

The worker, who asked that his name be withheld because he still works for the company, said he was told that certain positions in his department are not getting filled for now when someone leaves.

The economic slowdown also is affecting staffing concerns at some individually owned properties around the valley.

Silverton General Manager Yale Rowe said the property has "adjusted our staffing levels" similar to what has been reported with other companies.

"From time to time we have to make adjustments that fit business volumes, and this is one of those scenarios," Rowe said.

The labor reductions follow an announcement in July that the Silverton was delaying plans to build a new 360-room hotel tower because of the tightening credit markets.

However, construction continues on the first phase of a $500 million project that will include a casino expansion, new pool and parking garage.

Planet Hollywood Resort officials called the recent layoff of 68 workers a staffing correction following the property's grand opening in November.

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or (702) 477-3893.

Share & Save

Leave Your Comment	9 Reader Comments
Terms & Conditions The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor. Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. Frank Furter wrote on February 26, 2008 12:58 PM: Business is great!!! I see the Coast properties still have their hot dog person. If they let her go then half of the city would starve :P! Big Daddy wrote on February 16, 2008 10:34 PM: At Planet Hollywood, half of the 68 "layoffs" were from an already understaffed Facilities Engineer department. Poor construction costing, management and micromanaging by Robert Earl is going to result in a rerun towards another bankruptcy. There is no intention to rehire any employees because the "layoffs' were actually job position eliminations, or as they stated, "reduction in force". I officially declare the "Planet Ho" is dying. Soon it will be called the "Black Ho". b wrote on February 16, 2008 10:09 PM: dumb people up here... sure yeah your right its the buyout, even though MGM, and station have been cutting jobs due to the economy since NOVEMBER... Also the reason why Loveman got the STOCK bonuses is because now the company is private he wont be making that big money he was when the company was public... so instead they gave him a shit load of stock befor it was taken off the board and pay him a little as they can to keep him on board.... Hey sucks if you are a low level emplayee, but thats the nature of capitalism and free comerce. Kenny wrote on February 16, 2008 09:15 PM: I heard that more than just 100 are being let go. of Course this has to do with the recent buyout. David wrote on February 16, 2008 04:06 PM: THEY HAD TO CUT LABOR COSTS TO ACCOMODATE GARY LOVEMAN'S HUGE BONUS UPON THE CONCLUSION OF THE BUYOUT. ISN'T IT AMAZING THAT WHENEVER A COMPANY CHANGES OWNERSHIP, THE EXECUTIVES RECEIVE A HUGE BONUS AND THE EMPLOYEES GET A BONE... UP THE YAHOO. SAME STORY AT STATIONS WHERE THE WORD IS THE CUTBACKS ARE BECAUSE OF THE ECONOMY. YEAH, KEEP TALKING. YOU MIGHT CONVINCE YOURSELVES. tim wrote on February 16, 2008 04:01 PM: if everything is so doom&gloom @HARRAH;S does that mean some of the high end executives will have reduced hours & or less bonuses-YEA RIGHT Mary E Colletti wrote on February 16, 2008 12:20 PM: I Don't Know about Vegas, But Let's tell the truth as it is here in Illinois. The reason The casinos need to lay off workers is the Illinois smoking ban . The Indiana Casinos are crowded. Daniel wrote on February 16, 2008 11:26 AM: It's not about you it's about ME i am CEO and i need more money for me and my Elegant Life Style. You are pawns on a board game and i am king. We The People keep giving to the kings and all pawns will be left in the cold. Immigrating to Mexico and of course getting kicked out because we are illegals non resident was not born there ETC. Welcome to dooms day until WE THE PEOPLE stand up to these CORPORATIONS. They survive on your money, no money in Corporations fall we all fall but in the long run we get back to basics and the kings loose all kingdom and are left to suffer along with all of us. douglas wrote on February 16, 2008 10:00 AM: the teachers union games trying to tag the gaming industry with higher taxes while casinos approach tougher times is smart. that's the same as a referendum to add a sales tax on about to be foreclosed upon mortgage payments.