Las Vegas Sun

May 22, 2019

Currently: 78° — Complete forecast

Gaming:

Wynn Resorts cuts 261 jobs, restores 40-hour work weeks

Updated Tuesday, June 15, 2010 | 4:53 p.m.

Click to enlarge photo

Steve Wynn

Wynn Resorts laid off 261 people at Wynn Las Vegas and Encore today, calling it an effort to reduce overstaffing.

The company cut 220 hourly employees and 41 full-time employees. Wynn Resorts Chairman and Chief Executive Steve Wynn said the layoffs account for less than 3 percent of the company's workforce.

Wynn said the cuts will allow 3,700 employees in Las Vegas to return to their full wages. Of those 3,700 employees, about 2,300 are hourly and will return to 40-hour work weeks, while the other 1,400 employees are salaried.

Employees who earn less than $200,000 a year will return to their pay before the cut, Wynn said. Employees who earn more than $200,000, including Wynn, will keep their reduced salaries.

In February 2009, Wynn announced he was cutting pay by 15 percent for salaried employees making $150,000 or more and 10 percent for those making less. The company reduced work weeks to 32 hours for full-time, hourly employees to avoid layoffs.

Wynn said operating in that manner was no longer acceptable.

"What was appropriate as a temporary decision for three months doesn’t work for a year and a half," Wynn said Tuesday. "Instead of employees being thankful, it starts to operate against you. Employees are full of angst because they are working on reduced wages."

Wynn said he began to consider the change about 2 1/2 months ago when he received a letter from an engineering department employee who said he wasn't able to pay his bills and was in danger of losing his house because of the reduced hours.

After hearing that the reduced hours and pay were becoming a problem for others, Wynn had his executives look for any overstaffing to see what positions could be cut.

“I told my guys that I don’t want to do this with any fat in the payroll," Wynn said. "How many people are we carrying that we shouldn’t have?”

Even with the layoffs, Wynn said the changes will increase payroll costs by $7.7 million. Without the layoffs, Wynn said it would have cost $10 million to bring everyone back to full-time hours and increased pay.

“If I get the morale back, that’s more important than the money,” Wynn said.

The February 2009 cutbacks included eliminating bonuses and 401K matches, and instituting a hiring freeze for empty positions — all of which are still in effect, Wynn said. Between 800 and 900 positions haven't been filled because of the hiring freeze, Wynn said.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy