Yesterday Wynn Resorts announced it was implementing a number of efficiency initiatives aimed at keeping full-time staff employed. The company believes that by reducing hours and pay, eliminating 2009 bonus accruals and suspending 401K retirement contributions, plus other operational efficiencies, it will save around US$75-100 million a year.

Steve Wynn, Chairman and CEO of Wynn Resorts commented, “The management team at Wynn Resorts recognizes their responsibility to the employees, customers and shareholders to maintain the strength and health of the business and the integrity of the guest’s experience. We will make decisions that protect and preserve the stability of the employees and allow the company to optimize its performance.”

Wynn Resorts owns and operates Wynn Las Vegas, Encore and Wynn Macau and room prices at the newly opened Encore in Las Vegas were dropped to bring in more guests. However, the company states that it has a strong balance sheet with over US$1 billion of cash and only US$375 million of debt maturities over the next two years. In the present economic climate Steve Wynn expects that Wynn Resorts’ stock, as well as that of rival operators, will continue to come under pressure. (E-02.04.09)

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