Search
 

Steve Wynn Says No Layoffs Despite Slowdown

LAS VEGAS-Attributing a 20% drop in first quarter profit largely to bad luck at the tables, the casino mogul tells analysts to look at non-casino revenue, which is off only slightly.

By Brian K. Miller | Updated on May 02, 2008

LAS VEGAS-High-end casino-resort mogul Steve Wynn told analysts Thursday that the company’s 20% drop in first quarter profit was largely bad luck at the tables and that investors looking more closely will see a more noteworthy story, which is that non-casino revenue held up, despite the economy, thanks in part to foreign tourists taking advantage of the weak dollar. Wynn was adamant that he would not be reducing his workforce or service levels to offset a slowdown in domestic business.

“In my career I’ve never had a layoff, in Las Vegas or anywhere else, and don’t intend to do it [now],” Wynn told analysts. “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.”

Wynn Resorts owns two operating casino resorts, Wynn Las Vegas and Wynn Macau, and has two more under construction, Encore at Wynn Las Vegas and Encore at Wynn Macau. The $2.2-billion Las Vegas addition is expected to be up and running at the end of this year. The $600-million Macau addition is slated to open in 2010.

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?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

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 © 2024 ALM Global, LLC. All Rights Reserved.