MGM Job Cuts Signal Economic Recession

The gaming industry is widely considered "recession proof".  Don't tell that to the folks at MGM.

MGM Mirage claims they cut approximately 400 management jobs based on a plan devised last August in the wake of a slowing economy.  The job cuts were implemented only this week.

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.

Shares of the Las Vegas-based gaming company shed $2.12, or 4.1%, to $49.70, Tuesday afternoon.

"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.

.....Ladbrokes Plc (LAD LN) added 12 pence, or 3.8 percent, to 325.25. Europe's biggest publicly traded bookmaker said its Spanish joint venture with Cirsa Corp. obtained a sports-betting license for Madrid.