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Mandalay Resort Group cuts jobs
09/29/2001
By Associated Press
LAS VEGAS — Casino operator Mandalay Resort Group announced Friday it was cutting 4,500 jobs, about 15 percent of its work force in Nevada, because of the Sept. 11 terrorist attacks.
The company's top 100 executives also agreed to reduce their salaries by a total of $5 million.
Mandalay shares rose 72 cents to close at $16.23 on the New York Stock Exchange. The stock has lost 35 percent of its value since the terrorist attacks, mirroring the performance of other local casino companies.
Mandalay operates five casinos in Las Vegas.
The city has been hard hit in the aftermath of the attacks, as jittery travelers abandon air travel following the attacks involving four hijacked commercial jets. An estimated 46 percent of its 250,000 daily visitors arrive by air.
MGM Mirage has eliminated an estimated 3,000 of its Las Vegas work force's 38,000 jobs, and more cuts are expected. Park Place Entertainment has cut at least 1,500 jobs at Paris, Bally's, Flamingo and Las Vegas Hilton.
The Aladdin, The Venetian, Stardust, Riviera and Binion's Horseshoe also have eliminated jobs, placing the citywide layoff figure at 12,000 to 15,000, although no solid number is available.
Tens of thousands of others in the city's 230,000-employee casino industry are working reduced hours.
The Las Vegas Convention and Visitors Authority is expected to launch a new marketing plan to draw more visitors from Southern California, Arizona and elsewhere nearby.