Casino Connection Nevada

Industry layoffs not significant

by Staff

The link between the softening economy and tightening credit market and a new round of layoffs in Las Vegas is spurious, at best, MGM Mirage is saying.

“Frankly, layoffs just weren’t getting reported in years past,” said Alan Feldman, spokesman for MGM Mirage. “There’s historically been some seasonality in Las Vegas, going back decades.”

Every year following the Super Bowl weekend and Chinese New Year’s, as well as during the hottest months of summer, seasonal workers are laid off because of declines in business.

Of course, that doesn’t mean that the company isn’t preparing for a predicted slowdown in business in the coming months. MGM Mirage is looking to curtail hours for part-time workers, if necessary, Feldman said. And things are looking like they may, indeed be slowing down.

“Fewer people are coming and they’re staying for shorter periods of time. February can historically be a slight downturn, but it’s more pronounced—‘08 is looking like it’s going to be a rough year,” Feldman said.

Of course, not all properties are experiencing any troubles.

“We’re hiring, not laying off,” said George Maloof, owner of the Palms Casino Resort. “We don’t have 5,000 rooms and we’re less challenged.”

Maloof has fared better than other properties in previous downturns in Las Vegas. He opened the Palms shortly after the 9/11 terrorist attacks, and the property was a success despite troubles in other areas of the Las Vegas market.