MGM Mirage fires over 400 middle managers

dendrite

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Dec 7, 2007
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London
LAS VEGAS -- MGM Mirage Inc., the largest casino operator on the Las Vegas Strip, told more than 400 middle management employees Monday they would be terminated immediately in a cost-saving move, the company said.
The decision will save $75 million annually and came after the company saw weakness since August at its properties, which include Bellagio, MGM Grand, Mirage and Mandalay Bay, spokesman Alan Feldman told The Associated Press.
The move is the largest and swiftest by a casino operator in the current economic downturn, although the use of so-called "extra board" employees such as dealers and busboys who take fill-in shifts as needed has been down citywide.

The Capital Times 4/15/2008 12:31 pm
 

winbig

Keep winning this amount.
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I smell lawsuits in the air....how can they just fire people because business is bad? Shouldn't it be laid off? :rolleyes:
 

suzecat

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California
I smell lawsuits in the air....how can they just fire people because business is bad? Shouldn't it be laid off? :rolleyes:

Times have changed.............no more "cause" required to fire employees as employment is "at will" on both sides (employer/employee).
 

jetset

RIP Brian
Joined
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Earth
It's another flag on how serious this economic downturn is - the full article from AP has a spokesman saying that visitors to Vegas - if they travel there at all these days - are cutting back on how much they spend.
 

classymom

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Port St lucie Florida
I smell lawsuits in the air....how can they just fire people because business is bad? Shouldn't it be laid off? :rolleyes:


In Nevada they can fire you for anything and get away w/ it. My husband was a manager over 150 men at a large construction Co. One of the Vice Presidents took offense to my husband contradicting his method on a certain job in a meeting, next day they let him go.- We went to a lawyer to see if we could file a wrongful termination suit and was told that in Nevada they can fire for any reason.:mad:
 

winbig

Keep winning this amount.
Joined
Mar 10, 2005
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Pennsylvania
In Nevada they can fire you for anything and get away w/ it. My husband was a manager over 150 men at a large construction Co. One of the Vice Presidents took offense to my husband contradicting his method on a certain job in a meeting, next day they let him go.- We went to a lawyer to see if we could file a wrongful termination suit and was told that in Nevada they can fire for any reason.:mad:


That's horrible. Whatever the reason for firing - downsizing or just plain goofing off on the job - looks horrible on ANYONE'S resume`. But of course the law doesn't give a rats ass about anyone's future ability to land a job...it's all about the almighty $ the big corporations pay to lobby for laws that favor them.
 

suzecat

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California
It's another flag on how serious this economic downturn is - the full article from AP has a spokesman saying that visitors to Vegas - if they travel there at all these days - are cutting back on how much they spend.



Sadly, discretionary spending is usuallly the first to take a hit in a recession...............as housing and food costs rise, entertainment budgets suffer.
 

dendrite

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London
discretionary spending is usuallly the first to take a hit in a recession

Yes, it's going to be interesting to see what happens, because people can no longer escape the temptation to spend simply by staying at home (because of the internet). Perhaps online gambling will increase at a faster rate than it would have done in better economic times? If so, then bricks and mortar casino owners will soon demand a piece of the internet gambling action.

Perhaps the end of the UIGEA is nearer than we think?



ps
More on the MGM story:

MGM Mirage Dismisses 440 Managers in Unwise Accounting Move
Now even MGM Mirage has become Columbia Sussex.

MGM Mirage dismissed over 400 managers nationwide Monday in a cost-cutting move. Although the majority of the released employees were located in Las Vegas, Michigan and Mississippi were also among the areas affected.

The company estimated the move would save MGM roughly $75 million. The layoffs were effective immediately, and are by far the largest move by a casino operation to reduce labor costs during the current economic downturn.

Alan Feldman, spokesman for MGM Mirage, said the soft market at some of the biggest properties, such as Bellagio and Mandalay Bay, since August had forced the layoffs.

Feldman noted that visitors to Las Vegas have been more budget-conscious of late. "Instead of four days, people stay for three. Instead of a five-star experience, they are going for four stars. Instead of two shows, they're going to one."

The dismissals took place across all sectors, from casino supervisors to marketing and corporate levels.

Despite the company's insistence of the necessity to save a measly $75 million after MGM Mirage grossed $8 billion in revenue last year, construction of the new $8.1 billion CityCenter project on the Las Vegas Strip continues unabated. The new MGM Grand Macau just opened in December, as well.

The decision reflects a common fatal flaw in the reasoning of corporate America, where properties are consistently overrated and people (employees) underrated. In making a typical beancounter decision, MGM sacrifices experience and customer service, choosing to overinvest in structures which then run poorly due to the loss of both quantity and quality of experienced employees.

The casino industry used to be an area that disdained costcutting, instead preferring to alter its bottom line via expanded revenues. It was one segment that always understood, even in tough times one must spend money to make money. Now even MGM Mirage has become Columbia Sussex.

Wall Street definitely took the layoffs as a sign of foreboding, as the MGM stock continued its six month decline, which has become an April spiral downward. Perhaps a gesture of confidence and willingness to withstand the economic troubles would have lifted the stock.
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
"Yes, it's going to be interesting to see what happens, because people can no longer escape the temptation to spend simply by staying at home (because of the internet)."

That's a very interesting observation imo, Dendrite. It's going to take more self-discipline for sure.
 

suzecat

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California
"Yes, it's going to be interesting to see what happens, because people can no longer escape the temptation to spend simply by staying at home (because of the internet)."

That's a very interesting observation imo, Dendrite. It's going to take more self-discipline for sure.


Or power shortages.:D
 

jetset

RIP Brian
Joined
Feb 22, 2001
Location
Earth
Or power shortages.:D

Damn - do you have these black-outs, too?

We're having a helluva problem which is impacting the national economy and causing a lot of anger against utility company execs with big paypackets and bonuses who don't appear to be doing their job too well.

It was chaos at first - you never knew when the power was suddenly going to go off and sales of UPS units and private generators soared. At least we now have a schedule so we know when the power is going to be switched off for a few hours.

Life in the 21st century....:mad:

Forgot to add another irritation - power surge when the juice comes back on - it can fry appliances!
 

suzecat

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Joined
Sep 18, 2004
Location
California
Damn - do you have these black-outs, too?

We're having a helluva problem which is impacting the national economy and causing a lot of anger against utility company execs with big paypackets and bonuses who don't appear to be doing their job too well.

It was chaos at first - you never knew when the power was suddenly going to go off and sales of UPS units and private generators soared. At least we now have a schedule so we know when the power is going to be switched off for a few hours.

Life in the 21st century....:mad:

Forgot to add another irritation - power surge when the juice comes back on - it can fry appliances!


Our Governator (Arnold Schwarzenegger) cleaned up a huge power crisis in California and promises the rolling blackouts will not return. I feel your pain jetset...........why does the power always go out at the worst possible time????????
 

Mousey

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Sep 12, 2004
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Up$hitCreek
From where I live, it's a 5 hour drive to an Indian casino. And a 6+ hour drive to any 'real' casinos. You're talking at least 2 tanks of gasoline for one trip. Where, once upon a time, that was no big deal, now it is. Not just because of the horrible rise in gas prices, but because of the rise in the prices of everything.

I received notices this week that my electric bill will be increasing beginning next month, my homeowners insurance is going up, and my phone co. is going up (they have a monopoly and are milking it for everything it's worth). And all that is on top of paying more for everything from groceries to hair cuts.

So... for the average player, what comes first? Groceries for a month or 2 tanks of gasoline to go on vacation/ gambling?

Needless to say, we won't be going on casinos trips 3 or 4 times this year. We went last Dec. It may be Dec. again before we go -- if at all this year.
 

Slotster!

I predict a riot.
Joined
Oct 17, 2004
Location
Location, Location!
:rolleyes:

That page is 2 years old. Add at least $1 to the US listed price and that's our average now.

Add the equivalent to the UK price too... We're still about three times as much as you guys! I remember the first time I visited the States about twelve years ago and visited a petrol station where you had to pre-pay for fuel. Doing a quick calculation in my head what it would cost me to fill my car at home - I gave the guy a $100 dollar bill and he said "are you paying for everyone!?"
 

classymom

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Aug 2, 2007
Location
Port St lucie Florida
From where I live, it's a 5 hour drive to an Indian casino. And a 6+ hour drive to any 'real' casinos. You're talking at least 2 tanks of gasoline for one trip. Where, once upon a time, that was no big deal, now it is. Not just because of the horrible rise in gas prices, but because of the rise in the prices of everything.

I received notices this week that my electric bill will be increasing beginning next month, my homeowners insurance is going up, and my phone co. is going up (they have a monopoly and are milking it for everything it's worth). And all that is on top of paying more for everything from groceries to hair cuts.

So... for the average player, what comes first? Groceries for a month or 2 tanks of gasoline to go on vacation/ gambling?

Needless to say, we won't be going on casinos trips 3 or 4 times this year. We went last Dec. It may be Dec. again before we go -- if at all this year.


Yes everything goes up but my pay check :mad: I was told @ my last review there would be no raises until the economy gets better - Aint that a load of crap.
 

Mousey

Ueber Meister Mouse
Joined
Sep 12, 2004
Location
Up$hitCreek
Add the equivalent to the UK price too... We're still about three times as much as you guys! I remember the first time I visited the States about twelve years ago and visited a petrol station where you had to pre-pay for fuel. Doing a quick calculation in my head what it would cost me to fill my car at home - I gave the guy a $100 dollar bill and he said "are you paying for everyone!?"

Yah, but it's also legal for you guys to play online -- even have B&M casinos with online sites, right? And is it usual for Brits to drive over 6 or 7 hours just to get to the nearest casino?
 

Mousey

Ueber Meister Mouse
Joined
Sep 12, 2004
Location
Up$hitCreek
Yes everything goes up but my pay check :mad: I was told @ my last review there would be no raises until the economy gets better - Aint that a load of crap.

Yep. Same here. I did manage to worm a little raise (very little) before the end of the year (I had an idea that the sh*t was going hit the economy fan soon). But where there used to be a little extra left at the end of the month, now there's nothing. And if things continue at this rate, it's only going to get worse. Heaven forbid that the car should need major repairs or the fridge need replacing. Expenses that, at one time, would not kill our checkbook would now cause some major problems.

And we depend(ed) on our little bit of interest earned on savings for extra 'fun' money every year. With rates so low, that's out the window, too.
 
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