Several Hundred Casino Employees Laid Off by Majestic Star in Gary, Indiana
Since the Majestic Star Casino Company of Gary, Indiana decided to buy the former Trump casino barge, it has had to do quite a bit of consolidating. In the past months, since making the announcement, more than 200 employees have been served with a pink slip. The layoffs continued on Monday, when an additional 350 or so employees were terminated, resulting in an overall loss of some 500 jobs.
Barry Morris, who is the general manager of the two operative Majestic Star casinos, said that the layoffs, although painful, were necessary given the ultimate expansion of the Magic Star Casino brand.
“We’re really stressed out about it,’’ Morris said of the termination of so many of his employees. “But it’s the only way to move forward for this property. The whole reason for the purchase is to combine two areas. Very few departments have been left untouched. This was not a process to weed out the bad people. This was a process to determine where we had duplicate and extra expenses and to eliminate that.
“We know we’ll emerge a lot healthier, and we’re already working hard on capital plans,” added Morris.
Most of the workers who were laid off, he said, were those who staffed the casinos’ table games, although employees in every department were affected. He emphasized that employees has not been laid off because they had performed badly, but rather strictly to eliminate duplication of positions in the company’s casinos.
Ed Feigenbaum, editor of Indiana Gaming Insight, said that, although the layoffs are painful, the casino company’s expansion will benefit the area and create lobs in the long term.
“I think you can expect more hiring within a year or so, and they will be well above the levels (Majestic Star) had when they took over. If everything is as they expected and they start increasing revenues and attendance, they’re going to need the additional employees,’’ Feigenbaum said.
“But it may not be in the same areas where people were being terminated.”
As for the employees who were fired, Majestic Star will hold a job fair on March 28th, which will be attended by dozens of potential employers. One such employer will be the Horseshoe Casino in Hammond, which has almost 100 open positions.
Rick Mazer, the Horseshoe Casino general manager, said that the casino has already hired several former Majestic Star employees, and would like to hire more.
“We have more dealer positions open than we do supervisor positions,’’ he said. “We realize it’s a tough thing for a community to go through, and we’re trying to do what we can. It’s a lot of people.”
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