Pechanga to lay off hundreds of workers
Palm Springs tribe says it expects to keep current staffing levels at its valley resorts July 23, 2008 Debra Gruszecki The Desert Sun
The Pechanga Resort & Casino in Temecula, one of the largest Indian gaming industry employers in California, announced plans Tuesday to lay off up to 400 of its 4,700 employees, a move that trims its workforce by nearly 9 percent.
The economy was blamed.
“For months, we have resisted the pressure to lay team members off,” Amy Minniear, president of the Pechanga Development Corp., said in a statement.
“But because of the prolonged economic downturn, we must downsize in order to adjust to the current market conditions and position ourselves for success once the economy recovers.”
As reported on mydesert.com Tuesday evening, the definite number of job cuts and the job types have yet to be determined.
Minniear noted that a comprehensive severance package, including outplacement services, would be in play.
The news follows reports by economists in Southern California that this portion of the state is in recession. The Los Angeles County Economic Development Corp. and the Kyser Center for Economic Research recently added that the entire state is on the brink of one.
Tourism is down and airports are noting fewer air travelers.
Casinos on Indian reservations, in Las Vegas and on riverboats have noted a dip in revenues, and a tendency on the part of gamers to play tables with lower minimum bets. Play time has fallen. Allure for $1 slots is fading.
“The fact is consumers are spending less across the board,'' said Jacob Mejia, public affairs director for the Pechanga Band of Luiseño Indians. “They're still coming out, but they're playing nickel and penny machines more often. And they aren't staying as long as they used to.
Tribes in the Coachella Valley could not all be reached for comment Tuesday evening.
But Nancy Conrad, a spokeswoman for the Agua Caliente Band of Cahuilla Indians, another major Indian gaming industry employer in the state, concurred the economy has been a challenge.
But the tribe that operates the Spa Resort Casino in Palm Springs and Agua Caliente Casino Resort Spa in Rancho Mirage has had no massive layoffs, nor plans for them.
“There has been some minor restructuring to adjust for the economy,'' she said, but all in all, tribal employment has been fairly constant. “Right now, we're maintaining.”
Debra Gruszecki can be reached at 778-4643 or Debra.Gruszecki@thedesertsun.com