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Oct. 04, 2008
Copyright © Las Vegas Review-Journal

Harrah's Entertainment plans to lay off more workers

By ARNOLD M. KNIGHTLY
REVIEW-JOURNAL

Harrah's Entertainment confirmed it is preparing another round of layoffs and hourly reductions at its Las Vegas properties.

Company officials late Thursday declined to say how many workers will be let go.

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    • They said the company will work closely with all employees who will be affected.

    "The country is experiencing a historically difficult economic period," said Jan Jones, senior vice president of communications and government relations for Harrah's. "The gaming industry, as nearly all consumer business in the country, has been negatively impacted by the difficult circumstances of the economy."

    The casino operator, which owns and operates Paris Las Vegas, Bally's, Bill's, Flamingo, Imperial Palace, Harrah's, Caesars Palace and Rio locally, has already cut nearly 1,500 Las Vegas jobs this year, according to an article published last month by Reuters.

    The decision comes as revenue and visitor volume to the Strip continue to drop.

    Gaming revenue on the Strip has declined 6.5 percent year-over-year through July, according to the latest figures available from the Gaming Control Board. Visitation to the Strip fell 4.6 percent in the same month.

    "Business levels for the Las Vegas gaming market are down," Jones said. "These circumstances require us to carefully evaluate our business to insure that we are operating within current business volumes."

    Harrah's is not alone in continuing to cut jobs and adjust employees' hours as businesses across the valley continue to adjust to the economic downturn.

    Bill Lerner, a Las Vegas-based gaming analyst for Deutsche Bank, said some properties have been closing off gaming table pits for extended hours, cutting restaurant hours and even closing rooms in hotel towers.

    "All of those carry employment," Lerner said. "Over the last two to three weeks, the behavior of visitors to Las Vegas has changed noticeably. They're spending very differently, and less, than they were prior to that. It's 100 percent related to the things people are watching on CNN and CNBC with the economy and the credit environment."

    MGM Mirage, which owns 10 properties on the Strip, has cut nearly 1,500 jobs this year locally, according to the Reuters article.

    Gordon Absher, MGM Mirage's vice president of public affairs, confirmed that number.

    He added, "We are continuing to deal the downturn in the economy just like every other city, market sector and household in America."

    Company officials wouldn't give exact staff counts.

    Station Casinos conducted another round of layoffs in early September, saying the number of employees who were affected represented "a very small percentage" of the workers at its 17 properties.

    The locals gaming company has hired most of the staff for its new Aliante Station, which opens Nov. 11, company spokeswoman Lori Nelson said Friday.

    However, some of the positions were offered to workers who were affected by the reductions last month.

    Newly laid-off workers will enter a job market that is already stressed.

    Las Vegas' unemployment rate hit 7.1 percent in August, the highest rate since July 1993 when the rate was 7.2 percent, according to the Department of Employment, Training and Rehabilitation.

    Jobs in the hotel-casino industry fell by approximately 600 in August despite the 1,100 new jobs provided by the opening of the $250 Eastside Cannery on Aug. 28.

    Jacob Oberman, director of gaming research for CB Richard Ellis, said the housing market will need to rebound before consumer spending returns and the job cuts slow.

    More employment help is coming. Wynn Resorts Ltd. is hiring 5,300 workers for Encore at Wynn Las Vegas, scheduled to open in December.

    Next year will see the opening of the $1 billion M Resort, which will employ about 2,000. Nearly 6,000 workers will be needed for the $2.9 billion Fontainebleau, and 12,000 will be hired for the $9.2 billion CityCenter project, slated to start opening late next year.

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

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    averagejoe wrote on November 07, 2008 06:19 AM: Excuse me, 4 day work week, my apologies.


    Averagejoe wrote on November 07, 2008 06:18 AM: haha, they tried going to a four hour work week a few years ago after 9/11 to avoid layoffs and the culinary union threw a fit. Thanks stupid Union Bosses.

    I live near Atlantic City and see this all the time. You know who needs to get laid off, some of these Union workers that make way more than they are actually worth. I met an electrician for a casino in AC who makes $30/hr. He is a college drop out who admits he only actually works about 3 hours a day, and it's not worth the hassle to fire him because he is union. He brags about this. I worked in the casinos and met hundreds more where he came from.


    The Unions need to realize that people get paid what they are worth, not based on how much they blackmail the casinos. And because of them we need to lay off even more than we actually have to because the Union puts up a fight when you make them play by the same rules as everyone else and try laying off their guys.


    P wrote on October 10, 2008 09:17 AM: why not just cut a few hrs. from each instead --but keep them on the payroll-so they can pay their bills & have medical??


    srose95709 wrote on October 08, 2008 11:56 PM: Reaganism did this to us


    LV Renter wrote on October 06, 2008 11:49 AM: Would it be possible to report how many construction workers are laid off when the casino construction projects end. The article makes it sound like there will be a gain in employment for the region while the opposite is most likely true.


    Dick wrote on October 04, 2008 11:05 PM: Notice how its always some VP giving the bad news. These casinos have to many high-paid bosses while screwing their employees. Planet Hollywood is a joke. They lay off hourly workers while hiring VP's. Harrah's is a bigger joke because it has more properties. At Planet Hollywood, they cancelled raises while the top executives took their raises. Robert Earl is a moron who has a history of bankrupting companies. Harrah's, MGM, and Stations got so greedy they priced themselves out of the market. They get what they deserve, except they keep ruining lives as they go. Dean D. is an idiot.


    patriot wrote on October 04, 2008 10:51 PM: meant , BOAST


    patriot wrote on October 04, 2008 10:50 PM: No zero, the premise of salvation is GRACE, by grace you have been saved thru faith, not of works lest any man braggith, its all what Christ did at the cross period!!!!!


    joshua levi wrote on October 04, 2008 10:34 PM: For those of you that are newcomers to our great city-Jan Jones was the mayor of Las Vegas right before Mayor Goodman and she was married to Fletcher Jones of the Fletcher Jones car dealerships. Can you say- "one of the good 'ole girls?"


    K HINRICHS wrote on October 04, 2008 10:06 PM: Losing revenue! We made three trips to Las Vegas this year. We play video poker and while we don't usually end a trip ahead, we usually have had a fun time. The machines have been tightened to the point, I don't need to return. We don't have fun! At least in years past, we lost money but had a good time winning and losing it again...no more. Put it in, Put it in, I am completely soured on returning. Gaming is all over the country now, Vegas has lost its luster.


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