225 jobs cut at Strip resort

Tuesday, Oct. 16, 2001 | 9:13 a.m.

Park Place Entertainment Corp. announced Monday it has cut about 5 percent of its workforce at Caesars Palace, one of the few Strip resorts that had avoided layoffs in the post-Sept. 11 economic downturn.

Two hundred twenty-five jobs were cut, including layoffs in a variety of areas and the permanent elimination of 45 management positions. Caesars had 4,900 employees.

"Caesars Palace has some inherent strengths that have allowed us to meet some of the challenges up to this point without immediate layoffs or staff reductions," said Debbie Munch, spokeswoman for Park Place. The primary strength was foot traffic that far exceeded the property's 2,450 hotel rooms -- which meant the property was not as severely impacted by a downturn in occupancy, Munch said.

"This workforce reduction represents both a reorganization (of the management structure) and a response to current economic conditions," Munch said.

About 1,000 workers at Caesars have been on reduced work weeks for the past month, she said.

The move comes as Park Place brings back workers on a part-time, temporary basis at other properties along the Strip. Park Place has called back about 600 workers on a temporary basis in recent days.

Including the Caesars cuts, Park Place now has 1,840 laid-off workers -- roughly 10 percent of its Las Vegas workforce.