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To: Johnny Canuck who wrote (44728)	4/16/2008 3:25:47 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68672

Fear And Layoffs In Las Vegas Melinda Peer 04.15.08, 8:14 PM ET MGM Mirage Tear Sheet Chart News Related Stories Dicey Economy Forces MGM Layoffs International Speedway's Earnings Speed Bump Int'l Speedway Taps The Brakes On Earnings Outlook Int'l Speedway Taps The Brakes On Earnings Outlook Economic Speedtrap For International Speedway Most Popular Stories Young Billionaires Easily Overlooked Tax Deductions The No-Tech Hacker Job Hunting In A Downturn How To Tap Lenders When Credit Is Tight MGM Mirage isn't willing to roll the dice on earnings growth given slowed consumer spending, laying off 400 managers Tuesday in a broad cost reduction measure that's been months in the making. MGM Mirage (nyse: MGM - news - people ) said the corporate cost-cutting plan was devised in August in response to the slowing U.S. economy. The layoffs, expected to save the company $75.0 million annually, were concentrated in Las Vegas at middle-level corporate managers. No further jobs cuts are planned unless economic conditions get significantly worse, the company said. The news, another indication that the U.S. economic slowdown has casinos down on their luck, sent shares across the gaming sector down Tuesday. MGM's stock shed $2.24, or 4.3%, to close at $49.58. Las Vegas Sands (nyse: LVS - news - people ) closed down $4.99, or 6.7%, to $69.03 and Wynn Resorts lost $2.63, closing down by 2.6% at $98.06. Morgan Stanley Analyst Celeste Mellet Brown lowered her 2008 earnings estimates on MGM to $1.83 a share from $2.21 a share, citing weakened demand in Las Vegas. Analysts polled by Thomson Financial project 2008 earnings of $1.98 a share. "Economic conditions in the U.S., including the downturn in the housing market and credit concerns, during the latter half of 2007 and into 2008 have had, and could continue to have, a negative impact on our operating results," the company said in late February. According to company spokesman, Alan Feldman, guests are opting for less frills while in Sin City, choosing cheaper accommodations, forgoing shows and taking shorter trips. Initially, the company's mid-market resorts outside of Las Vegas were hit the hardest. But destination markets like Las Vegas and Macau -- site of the company's recently opened MGM Grand Macau -- seem to be next. On Wednesday, Wachovia (nyse: WB - news - people ) Analyst Brian McGill slashed his first-quarter earnings estimates on a slate of casinos including MGM, which he cut to 39 cents a share from 46 cents a share (See: " International Speedway's Earnings Speed Bump"). Also on Wednesday of last week, the Nevada Gaming Control Board released February's casino report, which showed that revenue slipped 3.9% from the previous year. "While many markets have seen a slowdown, we believe the regional operators are likely to see a more stable year than the destination market of Las Vegas," McGill said, advising caution on Las Vegas Sands and MGM. MGM, which operates Sin City stalwarts like the Bellagio, Mandalay Bay and the MGM Grand Las Vegas, employs 54,700 people globally, according to Revere Research. The Associated Press and Reuters contributed to this article.