In a statement issued on Thursday, this week, Caesars Entertainment Corp announced that they would be downsizing the workforce to cut costs by up to $40 million annually. The majority of the action will take place at the Caesars’ Las Vegas Headquarters.
From Carl Icahn’s raising his investments in Caesars to others pulling out, there has been a lot going on with the company in the past three weeks. The decision comes amidst rising concerns over the financial position of the company.
To the relief of some existing Caesars employees, the company said in their statement that several of the eliminated jobs will be the positions which are already vacant within the company. For those affected by the strategic decision, Caesars offering compensation and will also arrange dedicated career counseling to help the employees. As of now the exact numbers of the employees who will be affected by this move is not confirmed.
Analysts and experts from the industry are connecting Caesars’ decision to a similar announcement made by competitor MGM Resorts International, which said that the company will cut 3% of its existing workforce by 2020.
The decision comes as a part of the fundamental strategic and policy shift taking place in the company after activist investor Carl Icahn increased his investments in Caesar to 17.75% earlier this month. Icahn, now the single largest investor in Caesar Entertainment Corp. said that the best way for forward for Caesars is to either sell or merge the company.
It was only in 2017 when Caesars had managed to entirely absolve itself from any threats of potential bankruptcy, following which the management had been working on a diversified strategy to improve the firm’s financial health.
While there has been no official announcement in regards to any potential merger but going by the reports in the local media, Tilman Fertitta, a Texas businessman, and Golden Nugget casino empire and Landry’s hospitality brand is still interested in Caesars – Caesars’ turned down his purchase offer in 2017.