Station Casinos and IGT announce workforce reduction

Las Vegas hotel and casino operator, Station Casinos, has announced that it will lay off up to 40 employees working at the reservation department due a company’s decision to move its reservation service overseas starting in early December. The 40 Station Casinos workers, who take reservations for a total of 11 Las Vegas hotels owned by the company, will be laid off on December 8^th after receiving a six weeks notice. Lori Nelson, Station Casinos’ spokeswoman, said the personnel reduction is based on operational reasons and that such difficult decision is not related to the economic recession affecting the gaming and hotel industry in Las Vegas. According to Nelson, the decision to move the reservations service is part of plan expected to reduce the annual expenses by $100 million.

"It was based on the most effective way to manage our reservation call-system needs. We're also allowing them time within their shifts to interview outside or inside our company. We're being as flexible as possible." Nelson said.

Nelson said that Station Casinos is currently working to relocate the affected workers in other properties owned or operated by Station Casinos. In addition, the company has implemented a policy that will compensate workers if they have not found a new position by December 8^th.

Meanwhile, the Las Vegas based slot machine manufacturer, International Game Technology, has also informed that less than 10% of its workforce will be discharged in the next weeks. About 40% of the affected workers already accepted a voluntary retirement plan; other IGT employees discharged this week will remain on the company payroll until January 4^th.

During a recent conference in where the company discussed its quarterly earnings, IGT Chairman and CEO TJ Matthews expressed that its staff reduction is part of a series of measures taken by the company to reduce its operational expenses. Matthews also said the 2008 fiscal year had been extremely difficult for IGT and that general revenues have fallen almost 5% during the first three quarters of the year.