Discussion in 'LV Strip Hotels & Casinos' started by VegasChic-, Oct 13, 2014.
At first glance that seems like bad news. I'm surprised it's so soon. I wouldn't put much weight into it though.
I would hazard a guess that all new properties over-hire rather than under-hire. If I was a business owner, I would do the same. I would over-hire for my grand opening because I wouldn't know what to expect and I wouldn't want to be caught short of providing expectations.
I would think most employees hired at a new casino would understand the casualness of their employment until after a few months when the casino settles into a rhythm.
Every new casino over hires. They can pick and choose who they want and go on. So far sls is busy, I don't know how booked the rooms are and gambling, but restaurants and clubs are busy.
I have a friend employed at SLS as a bartender. He stated going into the job that it was typical of casinos to over hire for the opening and then retain the best staff while letting the rest go once things stabilized. The way he sees it, employees of a new casino know what they're getting into (and, if they don't, they haven't been paying attention).
For what it's worth, a 2% layoff rate is lower than what I expected - especially at this time of year when things naturally tighten up anyway. Of course, it's tough if you're one of the staff culled out. My thoughts and prayers go out to them and their families.
Well put! The negative nellies will say, "see I told ya", but 70 some people out of 3,400 really isn't a disaster and it usually isn't the real hard-working, diligent employees who get axed at this point but rather the ones who called in sick or generally showed little aptitude to succeed or help the property succeed. I sure wish they needed to add 70 some people instead of cut, but frankly there'll probably be another round of cuts coming in the near future if they can't get the weekday volume up.
In another thread where someone posted about dealers leaving I said I was skeptical. Then someone who typically has good info PM'd me to tell me it was true. Their restaurants have cut back on hours and now this as well, not to mention the lukewarm response its received from early visitors and the press. I was hoping this place would do great and attract development to that area, but I don't see how this could be spun as even being "neutral" any more. Layoffs this early isn't normal business due to extra help needed during grand opening, you hire temporary and contract workers to help with that and avoid the expense that goes with layoffs. These layoffs are probably not payroll related so early on which means they're likely not reaching the target levels of business they expected.
As far as it being neutral, ask yourself if you were an investor and you heard this on top of all the other news whether you would think it was neutral.
"on top of the other news"? You make a solid point, but it's not unusual at all to over hire when originally staffing a business in my expereince and use that initial period to assess the qualities and work-habits of those hired. The "newness WOW" factor sure didn't last long here though, if it existed at all. Nevada's "right to work" laws make layoffs probably easier than most places and it wouldn't surprise me if there wasn't some sort of a probationary period that this fell within for those workers.
Hopefully that is the case. What I meant with "on top of other news" were things like the restaurant hours cut back and dealers leaving (though not really confirmed), as well as just the generally average reviews. In reality though I think we have to give it several months at minimum to say whether its underperforming.
Yep... you're correct... I was agreeing with you. I worded it weird. The layoffs in addition to the "other news" absolutely is "of concern" far more than if was what would be considered a minor course correction.
Nasty SLS comments
Wow, read the negative comments about SLS in this Las Vegas Sun article. I just had to share it here:
Any comments on this - I mean, the observations about the place, not the layoffs, which has already been discussed ad nauseum.
It's true there's been little positive press or good things to share about the SLS, but I urge you to pick any story in the Las Vegas Sun and read the comments and it's usually the same people trashing whatever the article's topic might be. On line comments tend to be a wonderful outlet for "any idiot with a keyboard"... I state as I type on my keyboard online!
Of course that's always true - I read the LVS every day - but I'd like to read responses to the specific observations some people made there, not just generalized shrug-offs.
2% of the staff.
This is worthy of a discussion?
Apparently. Watch as they go crazy when the seasonal slow down begins as Fall hits its stride.
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