The Borgata's Big Layoffs
Just yesterday I wrote about the troubles facing the Las Vegas Sands and now here comes news about another big casino company, this one in Atlantic City. Businessweek reports that the Borgata Hotel Casino and Spa, the most lavish and successful casino resort in New Jersey's gambling oasis, has just laid off 400 workers due to the worsening economy. The cuts represent five percent of the Borgata's work force, leaving around 7,000 employees. Spokesman Rob Stillwell says these were the first layoffs the Borgata had made. The company expanded recently, opening The Water Club i a $400 million, 800-room hotel this summer.
Times are tough for casino workers in Atlantic City. The four Atlantic City casinos operated by Harrah's Entertainment Inc. have also laid off employees in recent months Over the past year revenues have been slowly falling and September saw the worst-ever monthly drop in revenues, a decline of 15.1 percent. A bunch of ambitious building projects are slated for the area but some may not make it to fruition if the overall economic picture doesn't improve.
Gallery: Atlantic City