Gaming’s Reduction of Workforce

We all know that Las Vegas been taking a pretty bad beating over the past 18 months, or probably longer.  First the real estate industry crashed, and then the financial markets.  But it is the global recession that has negatively impacted the gaming industry the most.  Players are just not playing as much, and visitors are not visiting and/or spending as much. 

Without options, gaming has had to reduce the size of its’ workforce.  And the number of Las Vegas jobs that have been lost  is substantial.  According to previously released annual reports, here are some numbers (extracted from this article):

Casino         2007 FTE            2008 FTE         Job Losses
MGM Mirage     54,700                   46,000                   -8,700
Harrah’s               87,000                   80,000                   -8,000
Station Casino   14,500                   13,400                   -1,100
Boyd Gaming     16,900                   16,000                      -900

So, as you can see these four companies laid off close to 20,000 people in 2008 alone.  These numbers do not take into consideration layoffs in 2009 or from some of the smaller properties such as Herbst Gaming, Riviera or the Mesquite casinos who have laid off thousands more. 

It is sad.  We have not seen this level of layoffs since after September 2001. 

And unfortunately, I think what were once considered a RIF (Reduction in Force), will now be considered a RIS - Reduction in Structure.  Every company has learned how to operate more efficiently with less people.  So even as the economy turns around, I do not see all of these positions being filled again.