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Wynn Resorts cuts 261 jobs, restores 40-hour work weeks
Published Tuesday, June 15, 2010 | 3:55 p.m.
Updated Tuesday, June 15, 2010 | 4:53 p.m.
Steve Wynn
Wynn Resorts laid off 261 people at Wynn Las Vegas and Encore today, calling it an effort to reduce overstaffing.
The company cut 220 hourly employees and 41 full-time employees. Wynn Resorts Chairman and Chief Executive Steve Wynn said the layoffs account for less than 3 percent of the company's workforce.
Wynn said the cuts will allow 3,700 employees in Las Vegas to return to their full wages. Of those 3,700 employees, about 2,300 are hourly and will return to 40-hour work weeks, while the other 1,400 employees are salaried.
Employees who earn less than $200,000 a year will return to their pay before the cut, Wynn said. Employees who earn more than $200,000, including Wynn, will keep their reduced salaries.
In February 2009, Wynn announced he was cutting pay by 15 percent for salaried employees making $150,000 or more and 10 percent for those making less. The company reduced work weeks to 32 hours for full-time, hourly employees to avoid layoffs.
Wynn said operating in that manner was no longer acceptable.
"What was appropriate as a temporary decision for three months doesn’t work for a year and a half," Wynn said Tuesday. "Instead of employees being thankful, it starts to operate against you. Employees are full of angst because they are working on reduced wages."
Wynn said he began to consider the change about 2 1/2 months ago when he received a letter from an engineering department employee who said he wasn't able to pay his bills and was in danger of losing his house because of the reduced hours.
After hearing that the reduced hours and pay were becoming a problem for others, Wynn had his executives look for any overstaffing to see what positions could be cut.
“I told my guys that I don’t want to do this with any fat in the payroll," Wynn said. "How many people are we carrying that we shouldn’t have?”
Even with the layoffs, Wynn said the changes will increase payroll costs by $7.7 million. Without the layoffs, Wynn said it would have cost $10 million to bring everyone back to full-time hours and increased pay.
“If I get the morale back, that’s more important than the money,” Wynn said.
The February 2009 cutbacks included eliminating bonuses and 401K matches, and instituting a hiring freeze for empty positions — all of which are still in effect, Wynn said. Between 800 and 900 positions haven't been filled because of the hiring freeze, Wynn said.
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"If I get the morale back, that's more important than the money," Wynn said.
What a concept? Do you think any of the other 'nitwits' (as Wynn likens them) would consider such a novel idea? Until then, you will never quality service levels. Why should an employee bust his or her collective butts to enrich those that made lives miserable for employees?
Comment removed by moderator. Personal attack.
What about the morale of the ones that just got fired?
Yesterday Wynn and Encore announced the new "Resort Fee" of $20.00. Today they announce all these staff cuts. I wonder if they will see any connection?
I don't think this will raise morale for the salaried managers, who are still doing more with less. Also, do the salaried managers get raises as well, or are these raises simply restoring the mandatory 10% wage cuts they received?
VegasVegas said:
The Wynn is said to be one of the most miserable places to work in Las Vegas.
I say:
They are welcome to quit anytime they want too. I'm sure there will be a line of people to take that "miserable" job.
Only a blithering idiot would post that Wynn is a miserable place to work. If that was true, what would the Harrah's work experience be?
I do not work at any Hotel but from what I hear from people you cannot beat working at the Venetian if you work at one of these places.
Replacing Full Time employees with part time employees to save money on benefits. Well that folks is against the law, I hope that anyone who is laid off files a claim immediately with the Nevada Labor Commissioner...who already has a nice set of case files against WYNN Las Vegas.
I agree with logic_should_rule. I've worked in a lot of the strips resorts, and you would here the staff moaning about the 'free' food in the edr, never mind the fact that they were GETTING PAID to eat that free food because they DIDN'T have to clock out. So, if you work at 99.9% of the LV casino's, you do get a FREE lunch, and you ONLY have a 7 hr. work day! Some people would come to work early and eat, then eat their lunch, THEN, have a 'snack' before they walked out to their cars. They're the ones who moan the most about having to work too hard! I worked at the GN downtown after the Wynn's left. That edr turned into a soup kitchen with roaches! Yuck!
AH HA!!! Wynn is now figured out how to make up that 67 million he wasted on that stupid swimming pool!!! HAHAHAHAHA!!!!!
I know soooo many people that have worked for Wynn/Encore and gotten fired for silly/crazy/stupid little things. They fire people there like its a bodily function. And the people that I know that still work there all say that it really sucks. You couldnt pay me enough to work for this guy!!!
Give me Sheldon Adelson ANY day of the week. Now THERE is someone that knows how to 'take care' of his employees. He doesnt steal anyone's tips, everyone gets flex time, the medical/dental/vision insurance is the best in Vegas(and its free) and the management is very very laid back. You basically have to fire yourself.
Wynn was something at one time, but not anymore. Im embarassed for him.
Nice job Obama, Harry and Nancy with your laser like focus on jobs!!!
Steve WYNN will not be happy until he has taken every dollar from his customers and employees. Soon people will realize that NOT only is the WYNN not a good place to work, but also a bad place to gamble.
Wynn/Encore is a lousy place to gamble. Good food & drinks tho!
I'm can't see any silver lining in this report. I'm not sure that the remaining people that didn't get axed are super thrilled; I'm sure some of them are thinking they'll be next in 3 months. 261 people is a lot with no news of anyone adding staff; it's going to be a tough year.
Seriously:
**ALL** casinos fire like it is a bodily function - we have an annual 'turnover' rate approaching 50% at my old place on the Strip...
One of the worst places I've worked in my 30+ years in the workforce was the Venetian. Turnover there was more voluntary than forced, but moral stunk - and this was LONG before the economic downturn.
X-Doc - NO casino is 'fun, exciting or has a job team'. In reality they are little more than meat grinders: people in, sausage out. New people in, sausage out. New people in...well, you get the picture.
Casinos are considered great places to work in Las Vegas simply because they are the only mainstream employers in Nevada. Compared to retail or food service, casino life is good.
Compared to Microsoft, Boeing, HP, DELL etc. casinos are less than attractive places to work.
Another way to restore people to their full wages would be to stop forcing dealers to give their tips to the pit bosses. That might help with morale a little bit.
this will raise moral for the workers that still have jobs because they will know THEY are the ones that are good enough at their jobs to HAVE a job still.
capitalism is gorgeous.
The morale gets better for the remaining people who "needed" those 8 extra hours a week of work in exchange for 300 of their coworkers getting fired entirely! Sort of greedy--but we humans look out for ourselves first, it's in our nature.
As someone who manages staff, I applaud Steve Wynn for this move. It was an interesting experiment to cut everyone's hours and salary to protect the jobs of three percent of the workforce, but it proved to be a poor decision. As someone who has had to backpedal from what proved to be a bad staffing decision, I know it isn't easy, but the results will be amazing.
As for the silly comment above about the Encore's new pool ... Can you get over it? Encore's pool is THE place for daylife in Vegas. It is amazing and making money. Some people just don't get it.
To WyNNgoneCrazy: Steve Wynn did not replace part time employees with full time employees. There will be no law suits...you're a hater who wants to stir things up. He keeps his employees happy because he depends on them for 5 star customer service. It was probably a hard choice to make. He originally thought he would keep all of his employees and take their hours and perks away. Employee moral dropped and he decided to stop that.
By cutting those employees, the remaining employees have eased minds because they can get on with their life, not what else is going to be cut, when am I going to lose my job. He was smart in doing that.
He did not just fire anyone. Each department had layoffs and I far as I am aware, they cut the people with the lowest evaluations. The people who work hard for Wynn and continued to work hard with hours and perks being cut, stayed. Also, from what I am aware of, Wynn paid out all of their vacation days and they have a few months receiving their regular salaries. He is a fair man! Get over yourself!!!
It's brutal out there, in the hospitality industry, that is. Steve plays hardball with everyone, including himself.
By WYNNgoneCrazy
Steve WYNN will not be happy until he has taken every dollar from his customers and employees. Soon people will realize that NOT only is the WYNN not a good place to work, but also a bad place to gamble.
Hmmm Really now ?..seems our Asian guests might differ with you..as far as taking every dollar..nothing is further then the truth...as far as replacing FT employess with PT ...you better get use to it..its the wave of the future like it or not..
I wish all the naysayers ran their own businesses...we would have a different out look then..
The hospitality industry has always been brutal and I can go back as far as 1985 and say turnover, morale and other things was never great. Constant worries about ownership, making the numbers and keeping cheap minded guests happy was never something that made the industry shine. Yes there are some good operators, yes there are some positions that maybe good if not great but if your in the middle of all the daily grind then you face many challenges including keeping your job. One of the biggest problems we see with many of our properties is that owners hire in these young out of college kids with so called degrees that only worry about the bottom line. A 24 year old with a BA in business has no clue as to how to run a hotel or for that matter a casino. The first thing on their minds is how do I pass everyone up to get to the top. By thinking that way they end up screwing the hourly personnel who in my opinion and in my companies opinion is the most important asset and key to any operations success. I learned a long time ago from a General Manager that when you treat staff poorly then don't expect anything in return and they will not care how they do their work, which ultimately affects the guests union or non union. But I will add the hourly employee needs to know what the expectations are and if they dont meet them then there will be repercussions. You take the best hotel operations in the world and you would see that everyone is on the same page from management to the daily housekeeping staff.
p
As far as the hotel casino business goes in Las Vegas, this is by far the best one to work for, before the recession, during the recession and on into the future.
No other hotel casino can hold a candle to Wynn/Encore, or it's level of service, quality of product etc.
Seems most of the people posting did not bother to read the article.
Mr. Wynn RESTORED 3700 employees to FULL TIME! He also gave the salaried employees back their pay cuts.
Yes, he had to lay off 261 people but still raised his cost by $7 MILLION DOLLARS. Made good to 3700 people at the cost of 261 people.
Many people love working at the Wynn Hotels. Those making noise here have never worked there.
Try reading before commenting, you won't look as foolish that way.
However he had enough money to build and open that Wynn Resort club a few weeks ago. Wynn boasting that he cut his pay too is a joke. Trust me when I say whatever his cut is he won't feel it. Plus he knows that he will more than make it up in his profits.
Steve Wynn is as obnoxious as Donald Trump and their egos match.
Wynn has done absolutely right thing. From the common sense to have a reduced hours job is better than no job at all. But" no-one is appreciated the fact of having the job. That is why it is always better to get the misery out of the door.
A friend of mine works for Wynn. He likes it there. (Hope he's still there).
I worked for a company that did the same thing. Started cutting benefits. Cut out overtime. Cut our hours, got rid of the suite at the arena, and eventually started laying off employees. I was one of the last to go over a year ago. Got a check for $3500 and a couple boxes for my personal belongings. I just started working for them as a "consultant". Not a lot of hours, but the per hour pay is good.
I can't really blame the company, they kept us on the payroll for months hoping for a turnaround that still hasn't happened. Morale for those left is still low.
I'd work for Wynn in a heartbeat, I'd love to meet the guy.
@vpin:
Who is Donald T.? Is he a friend of Donald D.?
Ok, folks, here's my little riddle for today:
1st: If you exchange the first capital letter of Donald D.'s family name by an "F" what will his family name be then?
2nd: Has anyone of you guys watched the movie "Zoolander" starring Donald T. aside to the famous pop star/actor David Blowie? Watching that movie, what would you suppose Donald T.'s profession to be?
@vpin: Thanks for passing the ball.
I don't think Donald T. and Steve Wynn have much in common.
Steve Wynn is a successful entrepreneur, a geniuos, a business man who has developed so many resorts in Vegas and together with his wife has done so much more for Vegas, that I don't know where to start talking about the Wynns.
Who is Donald T.? Ok, he's a rich guy, but I hardly knew his name before I read the news today.
What has Donald T. been doing for Vegas so far?
god strikes again
yes that is true - they charge the 20 then the lay off - I would go to another casino - I know the less people coming in will probably have more lay offs - but only way is to NOT gamble or stay there. Go to a hotel that doesnt charge that fee and people like to work there.
I worked for Steve and Elaine Wynn from 1979 through mid 1983 at the Golden Nugget and I have to say that he is fair to say the least. Although I lost my job due to a strike that the Operating Engineers started, I never blamed him. He taught me everything I needed to know to start my own business in 1984 and everything I needed to know to make it sucessful. When I sold it in 2005...I said a quiet thank you to Steve. I've since started a new venture and I will again run it like I did the last one. I mean to make a profit.....wow.....what a concept! Steve drilled that into all of us at the GN and it worked then, and it will work now.
Bo
It is obnoxious that people, who arent even in the industry, can say this is the best property to work! Are u kidding me?? People have no point of referece when commenting on this issue. Most of his employees left very good jobs to come and work for him. And he has let his employees down at every turn! Yesterday an article was in the paper about him not ever having layoffs. today he justifies them. Who knows if he is so far removed from his company that he doesnt even know whats going on... AGAIN!
And, for the ones saying the people who got fired deserved it; i work there, the ones that got fired did NOT deserve it. they are hard working, no wave causing, good with the customers, people. it was more at random. Steve Wynn blows!
Part of being Steve Wynn is that losers take pot shots at you.
I like to see what the mighty union do this time, maybe they can employ and offer better pay for these laid off workers.
Vegasm:
Sorry, but not ALL casinos fire like it's a bodily function. Some more than others yes, but not ALL. Wynn is just one of those that do. I have worked for many, many casinos here in Vegas and moral is bad at some, not bad at others. Turnover is always high in the casino business. Thats just the casino business.
The best place I have worked in my eons in the casino business is The Venetian. If you are a miserable person then your moral is always going to be bad no matter where you work. In 10 years at the Venetian Ive never seen moral anywhere near as bad as you made it sound.
Moral's first than morale. Such a miserable venue.
Some individuals forget you donot come back from the dead. Use your time wisely. Enjoy the time you have because it cannot be replaced
We all seem to forget one very important thing. It is called WORK. If you have a job, be thankful someone is reimbusing your effort with a paycheck. And say what you want about the EDRs in the hotels. They feed you for FREE. Everyday I saw people pile their plates so high with what some of you call "garbage" you'd think they were going to the electric chair in an hour. I have worked for 52 years and before I came to LV 5 years ago I never got a free meal. Lunch at my company cost about $6-$7 a day (that's $1,700 to $2,000 a year!).I just left The Mirage to take a job off The Strip. It was not because I didn't love my job there. it was becasue I worked outside in the heat and cold at age 65. I miss my friends there, contact with the public, and the work I did. It was an honor to work there, no matter what anyone says about this industry. That also goes for Mandalay Bay and Station casinos (where I was also honored to work). I say: support your employer - he has a business that employs you and provides you with the chance to pay your bills. If you are not happy, stop your complaining and LEAVE. You'll do your employer, the public your serve and your fellow workers a FAVOR.
logic_should_rule. Right on. The people commenting here could only wish they had the business sense that Steve Wynn has. When they build multiple casinos and hire thousands of people, let here what they have to say.
Too many people today think that a job is an entitlement. Half the battle is just getting employees who will show up to work and do their job. I only have a staff of 10 and am amazed at the lack of work ethic and the unreliability. I can't imagine what it might be like to have 3700. I'll bet at least 1/3 of them are lazy bums. If I find a person who can show up and smile at the customers, I'll do everything I can to keep them. The rest of them - don't let the door hit you on the way out.
Nice Job Steve....no sense in keeping a bunch pissed off PT people on payroll. Not sure where that makes sense from a business standpoint. I would in an environment that is similiar in that people are making less money and are pissed off and negative about it. I think it was the right thing to do. Were the job cuts based on seniority and work ethic? I hope so.
leigheastcoast, If you despise Steve Wynn so much, Why are you working for him. If I worked for anyone who I would publicly say "blows", I'd go find another job. I've quit 3 jobs in the last 35 years. 2 were in due to a move to another town and one was because I was offered a substantial salary increase. Even the one I left because of salary was not a bad place or bad people, just cheap in the pay dept. so I moved on. My friend who works for Wynn has nothing but good things to say about him, and he's not one of those high paid managers, just a typical worker who does his job well.
acesbet:
That is a sagacious compilation of cognitive rhetoric, superseded by naive unawareness.
I like your train of thought.
Seems like a logical move to me. Employee moral is very important in the hospitality business. I've always admired Mr. Wynn and would consider it a pleasure to work for him.
WoW! to all the Wynn haters. If your attitude on here is the same at your work place it would make sense your not happy. Complainers/Haters dont get far in life. I love working for Wynn, its all business guys. Put yourself in his shoes for once. "I would never do this or that"..Well umm you cant because even if you did your business would fail. Working for Wynn is great compared to the options I had back home. I would've been selling drugs or dead if I stayed. But working for Mr.Wynn changed everything even got my second promotion TODAY. So to all the haters ..grow a pair, if you dont like it fine but dont b!ts# about it.. you will never get far with that mind set.
I knew that I, as a local, wasn't very welcome at Wynns' casino when I couldn't even get anything more than a bogus red piece of plastic (in leiu of a genuine player card) until I stuck that bogus piece of red plastic into a machine and proved my 'worth'... I basically told them to shove the plastic where the sun don't shine and I left - never looked back - never to return.
All these Wynn supporters must be part of the group of workers who get to legally steal from the dealers tips huh.
Comment removed by moderator. Name calling.
This is a savvy move by SW, not a charitable one to be sure. One good opportunity that a recession presents a business owner is the chance to cut the fat out of your payroll.
The only remaining employees at the Wynn properties are probably loyal and problem free. If the Wynn can get through the next year with their skeleton crew of preferred employees, when the economy rebounds, they can easily fill in their staff with carefully screened new employees from the huge pool of unemployed and job jumpers.
This is probably the last chance businesses have to pull this tactic before the economy rebounds, and it WILL rebound, even in Vegas. Look for other properties to make this "final cut" in the next three months.
right now steve wynn is speaking to his spa employees. it will be interesting if he can explain to the 15 full time employees why they have been laid off. massage therapists make no hourly rate or salary they work for commission only. when they give a massage they get a % of the fee, the rest is revenue generated to the wynn.their benefits are paid for by the massages. does that boost your morale.
This is a business decision, period. For those who have written "I Hear...." it is a terrible place to work. Where TF do YOU work that it is SO wonderful. If you don't work there, you do not know so Zip your Pie Hole. I see a LOT of Lazy people working in these big buildings... A Lot! These lazy people, generally speaking, are the ones who take for granted the wonderful working conditions they have in front of them. If they only realized it, they may find their job more rewarding. I was at Bellagio over the weekend and the aging, pompous, uninterested bartender, with an attitude, selling $19 glasses on wine couldn't have given a rats a** about those of us buying drinks. HEllo...??? you are a bartender in what used to be a great building. Show a little interest in your vocation. Be friendly and interested. $40 + tip for a round should warrant a little professionalism or at least a pulse. The young barback was the only who gave a sh** I see this in many many spots on The Strip. Pathetic.
A lot of people are taking things for granted. I think that's ok if the economy is hunky dory but we are somewhat in a recession. If things don't improve soon, we will be in for a double dip recession. Better save some rainy days funds.
Just do your job well and survive the storm. When the economy turns around, you can leave your current sheetty job if you want. This would provide a vacant spot for someone who's happy to fill it.
To LVMD2020: I can see by your anger and language that you are one of the obnoxious, loud-mouths that casono workers are expected to tolerate with a smile while the customer calls us everything but our name. Can you go into McDonalds and tell the woman behind the counter to "Get me a cheeseburger bi%&h! No, but we have to put up with people like you!
"Wynn said the cuts will allow 3,700 employees in Las Vegas to return to their full wages."
What is not said is there were about 12,500 employees at Wynn / Encore.
I agree with vegasstudent and fvbump82. Having worked in the industry, it is work, the turn over rate is high and you have people who come to work not to work just hang on and get a check. They create problems for the people who take pride in what they do and pleased at their accomplisments at the end of the day. Everyone have to understand first and foremost Steve Wynn is a businessman who is in business to make a profit for himself and share holders. Being in business means that you will make decisions that are not popular and have dire effects on the work force, however, the decisions have to be made. Imagine if there was no Wynn or Encore. Just imagine.If you are not happy, Leave and I am sure you will find something about your next job, you don't like.
I wonder if the engineer that wrote that letter to Wynn complaining still has his job?
the engineer that wrote that letter did everyone a favor, are you kidding me, they got rid of dead weight slugs. everyone that got let go had write ups and points on em, and bad evaluations,they thought it out and went through each department TWICE... merit is what they went by. that engineer is a hero 1400 managers got there salaries back, 3700 line workers got there 40 hrs back , POWER OF THE PEN!! ive worked there for a while now but in a round about way mr.wynn has put food on my table and thousands of other tables for the last 20 years ,through massive new construction projects ,remodel after remodel at his properties ,nothing but the best... he's my hero and i thank him ,THANK YOU MR.WYNN!! i know it was the hardest things hes ever had to do , he held alot of pride for not laying anyone off for 40+ years, cmon hes done everything for this city and all everyone can do is slam the guy, the greatest thing to happen to Las Vegas , the place we all call home...WAKE UP look at the bigger picture.. 5 STAR lunches ,uniforms,they even got a 1-800-But-Hurt hotline to complain if someone hurts your feelings... craziness ,,best place to work in town period.
gowynngo, you are right, downturns present a great opportunity for employers to clean house of the dead weight. In a group of 3700, it shoiuldn't surprise us that some are dead weight to the company. The last place I worked got rid of such employees in a couple rounds of layoffs. After the company went from over 30 people to less than 10, it was my turn. Now I occasionally work for them as a "consultant" and get paid a lot more per hour, only when they need my services. Works good for me and for the company, and I'm free to work for others as well. Another company I worked for years ago caught a guy taking bribes from contractors, but were afraid to fire him for fear of a race based lawsuit. The guy was a real jerk who deserved to be fired. Six months later, when layoffs became necessary, he was swept out with a dozen others and couldn't make such a claim.
Sorry Irish Fighter (nice name btw - not telling at all)- you are wrong. Deal with it. I have a problem with Lazy people any place, any time. You don't know me so your accusation is off base. I could equally accuse you of being a jack ass moron loser who gambles away all his money that he doesn't have and has a lame going nowhere job, drinks and smokes too much, whines all the time and really doesn't have any true friends... but that would be just as irresponsible as your weak baseless attack on who I am, so I won't.
These frickin millionaires/billionaires spend more money on a single pair of shoes than the laid-off workers make in a month - so here's an idea - forego the fancy shoes and keep a person working awhile longer.... it's not that hard to do - we 'commonfolk' get by just fine without Jimmy Cho shoes ..
"Wynn said he began to consider the change about 2 1/2 months ago when he received a letter from an engineering department employee who said he wasn't able to pay his bills and was in danger of losing his house because of the reduced hours."
Hmmmmmmmmmmmmmmmm.
The economy tanked and the dealers at Wynn lost about 20% of their income because of the loss of players who were not coming to Las Vegas. Add that 20% to the 12-14% that Wynn TOOK from them to redistribute to those making up to $35 per hour (while dealers are being paid minimum wage) and also reduced them to 32 hours (another 20% cut) and the total loss of income has been nearly 55%. Yet those such as an engineeering employee who does not earn tips and relies on wages took a 10% cut in pay and lost one day a week for about a 30% loss.
So Wynn's response was to alleviate the stress (financial and otherwise) associated to employees such as the person in engineering, what did he do for the 600 Wynn dealers who he directly impacted with his tip pooling policy? NOTHING!
Yet dealers at Wynn have been losing their homes and filing BK's for FOUR YEARS. So, where was the "compassion" for them? There was NONE.
Okay, so maybe they get to work 40 hours again, but that still leaves them with about a 30-35% loss.
What are you going to do for the 600 dealers Mr. Wynn?
To all of you who think the people laid off at Wynn deserved it, and by the way the number is higher than 261. The 261 were the ones who received their last paycheck on Tuesday. There are more.
To all of you who think the people laid off at Wynn deserved it, and by the way the number is higher than 261. The 261 were the ones who received their last paycheck on Tuesday. There are more.
I work for the Monte Carlo and I have to say I love it and am Thankful to have a job. I heard Wynn was not the best place to work but it is a job. All I can say is Im glad Im awith the MGM?Mirrage company it is the best company to work for in Vegas
By the Way to all the Dealers complaineing about Wynn taking there wages Im with the Bartenders Union and they would never let that happen. I hate to say it but its the Dealers fault for voting agienst bringing the union in. They are the ones who voted them out.
Steve Wynn is Vegas' best operator since Moe Dalitz.
Everyone likes to take pot shots at Steve Wynn but the man operates to a standard of his own. Who is John Galt? Steve Wynn thats who!