There’s no double or nothing at Connecticut's casinos. One casino is cutting back on executive salaries, raises and 401K contributions.
All 9,800 Mohegan Sun employees, including senior management, will begin seeing smaller paychecks on Feb. 1.
Mohegan Sun will roll back salaries for vice presidents and other senior management by 10 percent, cut pay for middle management by 7.5 percent and reduce wages for all hourly employees by 4 percent.
The CEO of Mohegan Sun said it would also suspend all annual and merit-based compensation increases and will no longer match 401K contributions.
Mohegan Sun has cut 500 jobs through attrition and recently decided to suspend its major expansion project. The tribal council decided the 39-story Earth Tower and the 1,500-seat House of Blues were too expensive to build right now, given the current economy.
In a prepared statement, the casino said the changes were due to unprecedented market conditions.
Mohegan Sun is not alone. Revenue at Foxwoods slots is down more than $70 million dollars. The casino laid off 800 casino workers because of the souring economy.