100-plus will be receiving layoff notices at Foxwoods
Tribe says reorganization won't target MGM Grand
By Karin Crompton Published on 6/28/2008
Only a year ago, at the first-ever summit of its kind held in Hartford, speakers dissected the myriad ways the Mohegan and Mashantucket Pequot casinos have made their impact on Connecticut. Mostly, the summit focused on the casinos' economic impact, their growth and where the state would be without their infusion of cash.
For years, the casinos seemed immune to changes in the economy and the layoffs that have plagued other industries.
But on Thursday, Foxwoods Resort Casino announced it would lay off employees - amending the announcement Friday to say that about 1 percent, or a little more than 100 people, would lose their jobs. All of the layoffs affect Foxwoods employees and not those at the new MGM Grand, according to a tribal spokeswoman.
The move to lay off casino workers came three months after the Mashantucket Pequots, who run Foxwoods, offered buyouts to employees of the tribal government.
Both casinos' credit ratings have dropped this past year, and slot revenues have been down.
Foxwoods reported a 17 percent year-over-year drop in slots revenue in December, while Mohegan Sun reported an 18.8 percent drop.
Both casinos saw steady declines until May, when their numbers rebounded somewhat: Foxwoods posted a 7.7 percent gain in its net slots win, including figures for the newly opened MGM Grand, and Mohegan Sun's net slots win increased by two-tenths of a percent.
Are casino layoffs a sign of the times? Or are they a natural shift in a business that employs 10,000 people?
”I think you have to remember when money is good and people have disposable incomes, then many people choose to (spend) it by gambling,” said John Tirinzonie, a labor economist with the state Department of Labor. “The problem is that when people have to tighten their purse strings, it's going to affect a variety of things, and I don't think casinos are any more immune to that than restaurants or retail or any of that.”
The Chamber of Commerce of Eastern Connecticut was among the chief organizers of last year's Native American Economic Impact Summit, held at the Connecticut Convention Center in Hartford. Tony Sheridan, chamber president, said things have changed since the summit - though not for the worse, despite layoff announcements.
Sheridan said the two casinos' employment rolls have gone up “dramatically” since the summit, increasing by about 2,000 people. Their importance to the state's economy, he said, is even greater when considering the loss of revenue elsewhere.
”It's a huge part of our economic engine now in the state of Connecticut,” Sheridan said. “The amount of hiring that's going on is still going on over there, even though there are some layoffs - which is confusing to some people. There are still a significant amount of layoffs. … What's happening, quite frankly, is these are normal adjustments that a company goes through.”
Sheridan compared the situation to events in the last year at Pfizer, which, despite layoffs, also hired new employees.
Several small companies told the chamber this week that they're looking for engineers, Sheridan said, adding that there is a “backlog for engineers in the area.”
Lori Potter, a Foxwoods spokeswoman, said Friday that she's been told the layoffs announced Thursday, which affect mostly middle management and some hourly employees, are all the casino has planned right now.
Potter said part of the reason for the job cuts is the economy and rising fuel costs affecting casinos industrywide. Mostly, she said, they are a result of interim president Barry Cregan's review of how the casino operates as an organization.
Potter said there was recently “a review of the whole organization to determine that there's no duplication of effort, that everything is being run in the most cost-effective, strategic way possible for the management of Foxwoods overall.”
Potter added that the casino has a number of developments under way, and as those are completed, more jobs will be available. She said Foxwoods encouraged many of the employees who were laid off Thursday to look internally for new job postings.
K.CROMPTON@THEDAY.COM
By Karin Crompton Published on 6/28/2008
Only a year ago, at the first-ever summit of its kind held in Hartford, speakers dissected the myriad ways the Mohegan and Mashantucket Pequot casinos have made their impact on Connecticut. Mostly, the summit focused on the casinos' economic impact, their growth and where the state would be without their infusion of cash.
For years, the casinos seemed immune to changes in the economy and the layoffs that have plagued other industries.
But on Thursday, Foxwoods Resort Casino announced it would lay off employees - amending the announcement Friday to say that about 1 percent, or a little more than 100 people, would lose their jobs. All of the layoffs affect Foxwoods employees and not those at the new MGM Grand, according to a tribal spokeswoman.
The move to lay off casino workers came three months after the Mashantucket Pequots, who run Foxwoods, offered buyouts to employees of the tribal government.
Both casinos' credit ratings have dropped this past year, and slot revenues have been down.
Foxwoods reported a 17 percent year-over-year drop in slots revenue in December, while Mohegan Sun reported an 18.8 percent drop.
Both casinos saw steady declines until May, when their numbers rebounded somewhat: Foxwoods posted a 7.7 percent gain in its net slots win, including figures for the newly opened MGM Grand, and Mohegan Sun's net slots win increased by two-tenths of a percent.
Are casino layoffs a sign of the times? Or are they a natural shift in a business that employs 10,000 people?
”I think you have to remember when money is good and people have disposable incomes, then many people choose to (spend) it by gambling,” said John Tirinzonie, a labor economist with the state Department of Labor. “The problem is that when people have to tighten their purse strings, it's going to affect a variety of things, and I don't think casinos are any more immune to that than restaurants or retail or any of that.”
The Chamber of Commerce of Eastern Connecticut was among the chief organizers of last year's Native American Economic Impact Summit, held at the Connecticut Convention Center in Hartford. Tony Sheridan, chamber president, said things have changed since the summit - though not for the worse, despite layoff announcements.
Sheridan said the two casinos' employment rolls have gone up “dramatically” since the summit, increasing by about 2,000 people. Their importance to the state's economy, he said, is even greater when considering the loss of revenue elsewhere.
”It's a huge part of our economic engine now in the state of Connecticut,” Sheridan said. “The amount of hiring that's going on is still going on over there, even though there are some layoffs - which is confusing to some people. There are still a significant amount of layoffs. … What's happening, quite frankly, is these are normal adjustments that a company goes through.”
Sheridan compared the situation to events in the last year at Pfizer, which, despite layoffs, also hired new employees.
Several small companies told the chamber this week that they're looking for engineers, Sheridan said, adding that there is a “backlog for engineers in the area.”
Lori Potter, a Foxwoods spokeswoman, said Friday that she's been told the layoffs announced Thursday, which affect mostly middle management and some hourly employees, are all the casino has planned right now.
Potter said part of the reason for the job cuts is the economy and rising fuel costs affecting casinos industrywide. Mostly, she said, they are a result of interim president Barry Cregan's review of how the casino operates as an organization.
Potter said there was recently “a review of the whole organization to determine that there's no duplication of effort, that everything is being run in the most cost-effective, strategic way possible for the management of Foxwoods overall.”
Potter added that the casino has a number of developments under way, and as those are completed, more jobs will be available. She said Foxwoods encouraged many of the employees who were laid off Thursday to look internally for new job postings.
K.CROMPTON@THEDAY.COM
Labels: Connecticut, Foxwoods, layoffs
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