The economy has been heavily impacted by the nation-wide spread of the coronavirus. Numerous businesses have had to shut down, reopen, and in some cases, close once more. After a brief respite, unemployment rates are again on the rise.
Each state experiences distinct impacts. Nevada’s casinos were mandated to shut down in March. This shutdown persisted for approximately six weeks. The reopening of casinos has provided some short-term relief, however, casino employees across the state are experiencing the long-term repercussions.
Casinos have reopened, but not everything is back to normal
Numerous casino employees have resumed work, but a significant number have either not returned or have decided not to return. Casinos and their in-house restaurants are currently operating at only 50% capacity. Entertainment shows and nightclubs remain closed, leaving entertainers and staff out of work.
Despite some built-up demand from tourists in nearby states, Las Vegas is yet to see a return of business travelers. There is also no indication that attendees for conventions and meetings will be returning in the near future. This is expected to negatively impact major casino companies such as MGM Resorts and Caesars, who have traditionally targeted these lucrative visitors.
Casino operators across Nevada and the US are either furloughing or laying off employees, including the recently merged Caesars Entertainment. Even though the coronavirus is a factor, some of these layoffs are part of corporate consolidation. It’s likely that sluggish business will be responsible for some of these job losses.
White House officials recommend that Las Vegas should contemplate taking drastic measures to slow the rise in coronavirus cases. They warn not to anticipate a betterment in the situation in the near future.
Las Vegas Sands, the parent company of The Venetian and The Palazzo, announced a significant slump in earnings amounting to nearly $1 billion in the second quarter. The prospects remain bleak due to the ongoing spread of the virus. In a recent earnings call, Rob Goldstein, President and COO of Las Vegas Sands, voiced his concern saying, “We’re in a world of hurt here in terms of Las Vegas.” He added, “I’ve never felt more gloomy than I do today about what’s happening in Las Vegas.”
Nevada casino layoffs
Las Vegas Sands has yet to declare significant layoffs. Still, the company has lessened its hotel capacity by keeping The Palazzo hotel tower shut throughout weekdays. Morels Steakhouse and Lagasse’s Stadium have both stated that they have no intention of reopening. This may signify the start of a considerable downturn at one of Las Vegas’s most frequented luxury resorts.
Earlier this year, Wynn Las Vegas managed to pay all of its employees during the casino shutdown. However, business has been slow since reopening. As a result, certain eateries such as Charlie’s Bar + Grill will only operate from Friday to Monday, closing from Tuesday to Thursday. Additionally, the buffet will be unavailable on Tuesdays and Wednesdays. An undetermined number of Wynn employees will be put on furlough, but they will still have health benefits until the end of October, as per a casino spokesperson.
Boyd Gaming, a national casino operator, recently announced plans to cut at least 25% of its nationwide workforce. The company, which runs 12 properties in Las Vegas, has not specified the exact number of layoffs. However, CEO Keith Smith indicated in a letter that up to 60% of the company’s employees could be laid off. Boyd Gaming employs approximately 10,000 people in Nevada alone.
Penn National Gaming (PNG), a nationwide casino operator owning M Resort and the Tropicana in Las Vegas, has announced plans to reopen the latter on September 1. However, shortly after its reopening, the company intends to lay off 620 employees in October. Furthermore, M Resort is set to lay off over 300 staff sometime in August.
Circus Circus will permanently lay off 252 employees starting from Sept. 1. The casino has also closed its popular free Midway show, which has been a favorite among guests for years.
It seems that the entertainment team at Sahara has transitioned from being temporarily laid off to being permanently dismissed.
Consolidation impacting casino staff as well
The amalgamation of Eldorado Resorts and Caesars Entertainment will lead to additional job cuts. This reduction in staff forms part of the cost-saving strategy. However, this will concurrently affect casino workers as all enterprises in Nevada persist in implementing layoffs amidst the ongoing coronavirus outbreak.
Bret Yunker, the new chief financial officer at Caesars, did not provide specific numbers on how many Nevada employees would be laid off due to the merger. In a conversation with the Las Vegas Sun, he acknowledged that downsizing a workforce is always a difficult process, and pledged to handle it as compassionately and transparently as possible.
The economy, stricken by the pandemic, will persistently affect Nevada today and in the foreseeable future.
