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MGM Mirage Inc., the largest casino operator on the Las Vegas Strip, on Monday notified more than 400 middle management employees 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 use so-called “extra board” employees who take fill-in shifts as needed has been down citywide.
“We were able to see the signs of trouble on the economic horizon last August,” Feldman said.
“The economy was beginning to worsen and clearly was not going to get better in the immediate term,” he said.
But CEO Terry Lanni still gets a raise of course. Let these guys eat cupcakes.
What in the world is going on in this Country? The employment situation just gets worse and worse along with housing and every other conceivable thing that could go bad.......
azsk8fan - It's called "The Bush Administration".
Amazing, they are short probally one days profit so they destroy 400 careers. I know someone that gave up a lot to move there, now they are stuck with a house that cannot sell and 2 weeks severence from MGM. What a soulless organization!
Don't confuse moraily of a company with the pay of an individual of the company.
Lanni is paid for results not morals. As long as he's not allowing the company to break obvious laws and moving the company towards health and an increaded stock price that's what he's getting paid for. If MGM were moral they would provide 90 days of severance, job counseling and fairs, and education assistance. My guess is they will get a severance package based on senority and nothing more.
This is not just jobs in LV but the entire company. And these 440 jobs are less than 1% of their total workforce. Things could be much worse with recently reported revenue for the markets they are in.