Las Vegas Sands announces massive lay off in Macau

Hotel and Casino operator, Las Vegas Sands Corp. would dismiss about 11,000 workers at its Macau properties as part of plan to alleviate the financial crisis that forced the company to stop the progress of several hotel projects in the region, a top executive said in a statement released yesterday afternoon. As many of 2,000 construction workers employed by Las Vegas Sands are from Macau, the remaining workers come from Hong Kong, mainland China and other countries, expressed Stephen Weaver, Sands' president in the Asian region. Sands would give preference to Macau workers in case of a possible relocation in other projects and properties owned by the company, however, due the present situation, most workers would probable be laid off, Weaver said.

"Regrettably there will be people from Macau in the construction areas that we cannot continue to employ," Weaver told the press in a conference held at the Venetian resort in Macau.

Early this week, Sands announced its decision to suspend the construction of several projects located in Macau as part of a plan that pretends to ease its complicated financial status, which also includes a series of agreements to raise $2.14 billion in new capital, including a few hundred millions from its chief executive, Sheldon Adelson. The announcement came after Sands said last week it was in danger of infringing lending conditions by failing to pay more than $5 billion in credits acquired to develop other projects.

Macau has dethroned the Las Vegas Strip as the largest gambling center in the world, thanks to a series of hotel and casino projects developed over the last years. Unfortunately, Sands' investments in Macau, Singapore, Pennsylvania and Las Vegas have created a financial gap that could affect the made meeting its debt obligations more difficult. Sands said that it will put two projects on Macau's Cotai Strip on hold, including a Shangri-La/Traders hotel tower. Sands have already invested $1.16 billion in the Macau sites, from a $13 billion budget estimated to develop the Cotai Strip.

Sands is trying to raise more than $3 billion in financing to continue the projects, however, Weaver said it's not clear how long that will take or when construction might resume. Weaver said he's confident the company will soon resume developing the Macau projects.

"We've got $1.2 billion sunk in to the ground; we're not going to walk away from it. I think there's no possibility that it's never going to start again. We can't promise that there won't be people that ultimately are laid off. But at this point no decision has been made." Weaver said.


Elton John Las Vegas



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