Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LAS VEGAS-Wynn Resorts Inc said Tuesday that it will be reducing salaries and work weeks in Las Vegas rather than headcounts as it adjusts to the recession. The casino operator also said it will eliminate 2009 bonuses and suspend its program of matching 401-K retirement plan contributions. Wynn said it expects to save $75 million to $100 million annually.

“In effect, everybody makes a little bit less money, but everyone keeps their job,” company chairman Steve Wynn said on a conference call with analysts. “We don’t want anybody on unemployment here.”

In December, Wynn opened the $2.25 billion, 2,000-room Encore adjacent to the three-year-old Wynn Las Vegas, promoting it heavily despite the slowing economy. Meanwhile, competitors including MGM Mirage, Las Vegas Sands Corp. and Harrah’s each reduced their headcounts to counter consumers’ decreased travel and spending.

“A lot of [other casino companies] laid off people in December,” Wynn told analysts. “We were unable to [make our changes then] because of the unusual situation we found ourselves in opening Encore. Those changes are being made now. The purpose of these changes is simple: to protect the margins for our shareholders and bondholders and banks, and to protect the job security of our employees.”

As recently as May 2008, Wynn told analysts, “In my career I’ve never had a layoff, in Las Vegas or anywhere else, and don’t intend to do it [now]. We consider employee morale and the feeling of security our employees have is the most important asset the company owns, more than our buildings and even our concessions; and when you do layoffs, everybody left says ‘who’s next?’, and that’s completely negative and counterproductive to what we are trying to do. So no matter what the short-term fluctuations in the American economy are I am telling anybody who is interested in our company [that] under no circumstances–under no circumstances–will I give any consideration, even for a second, to changing service levels or disrupting our workforce.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.