Caesars Entertainment Corp. is trimming its corporate workforce to cut annual costs, the company announced amid investor pressure to sell itself or merge with another hotel and casino operator
The Las Vegas gambling giant said in statement issued this past Thursday that it has decided to cut a small percentage of its corporate workforce in a bid to reduce annual costs by more than $40 million. Most of the affected employees are based at the company’s Las Vegas headquarters.
The company further pointed out that many of the eliminated jobs will be currently vacant positions. Affected staff members have been offered severance packages. Caesars will also cover career counseling services for the laid-off employees. It is unknown how many will be affected by the gaming and hospitality operator’s cost-cutting move.
Consulting services will, too, be trimmed as the company proceeds with its strategy to reduce annual costs.
Caesars’ announcement came just a few months after rival MGM Resorts International revealed its 2020 Plan that, among other things, involved laying off 3% of its workforce by 2020 to reduce annual costs. Around 2,100 employees of the Las Vegas casino and hospitality company will be affected by the move in the coming months.
Creating New Jobs
Caesars indicated in its Thursday statement that reducing its staff was a short-term move and that it would soon begin searching for employees for its Caesars FORUM conference center. The company broke ground on the 550,000-square-foot property last year and is planning to invest $375 million into its development. The convention and conference facility is slated to open doors early next year.
Caesars has dominated industry news headlines since the beginning of the year with the developing story of New York activist investor Carl Icahn becoming the company’s largest shareholder and pressing for its sale.
Mr. Icahn has built a 17.75% stake in Caesars since the beginning of the year and is now pressuring the company to sell itself or merge its business with that of a rival casino operation. According to the businessman, “the best path forward for Caesars requires a strategic process to sell or merge the company.”
The hotel and casino operator emerged from a lengthy and complex bankruptcy in the fall of 2017 and has adopted a multi-pronged strategy to reduce a behemoth long-term debt and reassure investors of its favorable prospects for the coming years.
No suitor for Caesars has emerged publicly in the months after Mr. Icahn’s involvement in the company was revealed, but according to recent reports, Texas businessman Tilman Fertitta is still interested in merging the Las Vegas gaming and hospitality giant with his own casino business. Mr. Fertitta is the owner of the Golden Nugget casino empire and Landry’s hospitality brand. He approached Caesars last year, but the company declined his purchase bid.
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