Luxury casino operator Wynn slashes hours, salaries, 401K to stave off layoffs

[Bluebear]

Luxury casino operator Steve Wynn on Tuesday announced plans to cut hours, salaries, bonuses and 401(k) contributions for thousands of his Las Vegas employees in an effort to stave off layoffs.

The decision affects employees at Wynn Las Vegas and Encore, a $2.25 billion resort that opened just six weeks ago.

During a conference call, Wynn said the company will reduce spending on everything from energy to floral arrangements if it results in preserving existing jobs and insurance benefits.

"Everybody makes a little less money but everybody keeps their jobs," Wynn said.

According to a written statement, the company plans to:

— Reduce pay for all salaried employees by 10 percent to 15 percent.

— Reduce workweek hours for full-time, hourly employees to 32 hours weekly.

— Suspend the employer match to 401(k) accounts.

— Eliminate 2009 bonus accruals.

http://www.lvrj.com/business/38930834.html

[Aviation Pro]

1. We are in serious trouble when casinos can't make money.....

...serious fucking trouble.

[provis99]

2. well Wynn overextended himself here

it has more to do with his own greed for building casinos than the state of the economy. Las Vegas should probably do even better as the economy goes into the toilet, just like lottery ticket purchases go up during recessions.

[Bluebear]

3. "Las Vegas airport has biggest passenger decline since 1981"

LAS VEGAS (AP) — About 44 million passengers flew in and out of McCarran International Airport in Las Vegas in 2008, a 7.7% decline from 2007.

The numbers released by the Clark County Department of Aviation include a 14.1% decline in December to about 3.2 million, and reflect the recession that has undercut Las Vegas tourism.

It's the biggest year-over-year percentage decline since traffic fell from 10.3 million in 1980 to 9.5 million in 1981.
http://www.usatoday.com/travel/flights/2009-01-26-las-vegas-passenger-decline_N.htm

[provis99]

10. then we're really in trouble if Las Vegas craps out

a lot of those jobs in that town are good paying union jobs.

[Still Sensible]

7. While there is some truth there

and this was a helluva time to open a new casino... As someone in the business, I assure you the decline in casino revenues is large and very real. 25 years ago, when nationally the supply (Nevada & New Jersey) far exceeded demand, the business was considered recession proof. With casinos now throughout the country, that is no longer the case.

[Still Sensible]

4. Wynn should be applauded for his approach

don't know how well it will work, but at least he's not putting people out on the street. I presume his intention is to reinstate hours, salaries and the bonus plan when business picks up.

[Bluebear]

5. Absolutely

It's a shared suffering, but it's going to be a hardship nonetheless. But as you mention, better than losing your job.

[PM Martin]

6. Not suprised to hear this.

I wonder if most of these casinos will sink. Seeing that discretionary income has disappeared, I do not see how casinos can survive.

[WCGreen]

8. Maybe he fell off the roof...

[MagickMuffin]

9. Wells Fargo is having their retreat there provided by us Taxpayers BAILOUT MONEY

I wonder if the employees will be able to accommodate them:shrug:

Wells Fargo…has booked 12 nights at the Wynn Las Vegas and its sister hotel, the Encore Las Vegas beginning Friday, said Wynn spokeswoman Michelle Loosbrock. The hotels will host the annual conference for company’s top mortgage officers.

The conference is a Wells Fargo tradition. Previous years have included all-expense-paid helicopter rides, wine tasting, horseback riding in Puerto Rico and a private Jimmy Buffett concert in the Bahamas for more than 1,000 employees and guests. <…>

“Recognition events are still part of our culture,” spokeswoman Melissa Murray said. “It’s really important that our team members are still valued and recognized.”

[MineralMan]

11. My wife and I visited both of the Wynn casinos

during our visit to Vegas last weekend. They're very posh, indeed. We had espressos in the bar at the Encore, wandered the floor of the casino, then walked to the Wynn Las Vegas and walked through its public areas.

This was on a Saturday, generally the busiest day in Vegas. The Encore, as expected, was loaded with people, but they weren't gambling. Rather, they were doing what my wife and I were doing...having a look around the latest generation of casinos. The gaming areas were essentially empty.

The Wynn Las Vegas, not being so new, did not have the crowds of looky-lous. Its casino floor was almost empty.

We were staying at the more affordable New York New York. Again, it was not busy on the casino floor at any hour, and elevators to the hotel floors never had more than two other people in them all weekend.

We didn't gamble much, apparently like most visitors, since all the casinos we visited were pretty empty. For example, the MGM Grand, on Friday night, had only three of its many blackjack tables in operation.

Very dismal for Vegas.

[bullwinkle428]

12. Is Wynn taking a pay cut himself? I would imagine it would make

the salary & benefits cutbacks a little easier on the psyche of the employees...