Tuesday, September 14, 2010

MOHEGAN SUN TO CUT 5% OF EMPLOYEE POSITIONS, CLOSE SUNBURST BUFFET AND OTHER FOOD OUTLETS

Feather News

The Day newspaper's Brian Hallenbeck is reporting this afternoon that the Mohegan Sun will pare its workforce by 475 positions, close the Sunburst Buffet, "a snack bar in its race book and two food-court outlets that will reopen under third-party management."

The news comes two weeks before the end of the Mohegan Tribal Gaming Authority's fiscal year and hours before tomorrow's release of August slot revenue figures. The end of the gaming authority's fiscal year is likely one reason for the timing of the announcement.

Last quarter the gaming authority reported an approximately 50 percent decline in its three-month profits so if the quarter that ends in two weeks isn't projected to show much improvement, the bankers and analysts will absolutely want to see proactive moves taken by casino management to address the sliding profits.

Yesterday's final approval on what will become New York City's first mega-slot parlor, to be located at Aqueduct Racetrack in Queens, N.Y., is not good news for Mohegan Sun.

Mitchell Etess, Mohegan Sun’s president and chief executive officer, said that 120 employees whose jobs were being cut would be transferred to other positions. Out of the 475 positions to be eliminated, 200 are in the food and beverage department and 75 positions are at the level of manager or above.

"The food outlets closing include the Sunburst Buffet, Chief’s Bagels, Subs and Sweets and Woodland Wok," according to the article.

The 475 positions represent about 5 percent of Mohegan Sun's 9,000 employees.