Layoffs hit workers at struggling Aladdin

Wednesday, Feb. 28, 2001 | 11:20 a.m.

The Aladdin megaresort on the Las Vegas Strip laid off about 100 employees this week as part of an effort to help the six-month-old property gain a better financial footing.

Lynn Holt, spokesman for the Aladdin, said about half of the laid-off employees were dealers and casino supervisors, while the rest came from housekeeping. The layoffs represented about 4 percent of the resort's staff.

"This is a fine-tuning of the operation, an ongoing attempt to adjust staffing levels and find better operating efficiencies," Holt said. "This is the only (layoff) planned of this magnitude. We won't stop looking at ways to increase efficiency but this is the only (large) staffing cutback right now."

The Aladdin is currently seeking cash to help it get through its start-up period, but is having difficulty finding it because of the financial struggles of its main financial backer, London Clubs International. The resort's interest costs alone are estimated at $80 million per year by analysts, and the Aladdin last reported cash reserves of just $10.3 million on Nov. 9.

"Of course, (the layoffs) have everything to do with running the business as efficiently as we can and maximizing profitability," Holt said when asked if the layoffs were connected to the resort's financial troubles.

The Aladdin's last financial report indicated the resort recorded a net loss of $40.2 million for the quarter ending Sept. 30, 2000. The Aladdin's financial report for the quarter ending Dec. 31 is scheduled to be released in mid-March.