Vegas woes continue with MGM job cuts
15th April, 2008
Yet more bad news has come out of Las Vegas with confirmation that MGM Mirage is laying off some 440 management employees.
Analysts had speculated that the strip's largest casino operator would be forced to shed some jobs in response to difficulties afflicting the wider US economy.
But according to MGM Mirage president Jim Murren, the management and supervisory level staff cutbacks were simply part of a broader belt-tightening process that is expected to save the company about $75 million (£37.5 million) each year.
"This is part of a company-wide program that we actually began in September," Mr Murren explained. "The fact of the matter is that our business, week to week, is improving. This was something, irrespective of the economy, that we needed to do."
The Gaming Control Board recently revealed that February gaming revenues fell by almost four per cent across Nevada and more than three per cent in the Strip alone. Average daily room rates are also down by as much as 19 per cent.
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By Chris M
