Mohegan Sun hands out pink slips

UNCASVILLE, Conn. (WTNH) -- The economic signs for Southeastern Connecticut's major business continue to look grim. Hundreds more pink slips are going out Friday at Mohegan Sun Casino in Uncasville.

After nearly a decade of increased business at Mohegan Sun and next door neighbor Foxwoods, there has been a complete reversal of fortune; 328 more people will be losing their jobs between now and the end of October, and the longtime CEO is getting the ax.

This is the second round of layoffs there over the past two years, and the layoffs affecting nearly every department.

When this layoff round is completed staff will be down to about 6,400, down from an all time high of 10,000.

The head of the Tribal Gaming Authority says competition is a big reason for the decline.

"You have a large casino in Rhode Island, you have; first, Empire City in Yonkers opens, then Aquaduct opens a larger casino," said Mitchell Etess, Tribal Gaming Authority, "those factors not only affect our market, but they also affect the entire Northeast Market dynamic."

For a decade, Mohegan and Foxwoods practically had a monopoly on gaming in the Northeast, but he says that's not the only bad business sign. About half their business comes from Connecticut residents, and they are coming less and spending less; a sign of the continued high unemployment and high gas prices.

"We see decreases in counties in Connecticut that cannot be being impacted by competition," Etess said, "because we're the closest casino."

Employees News 8 spoke with declined to go on camera, but one told us they are all on 'pins and needles' waiting to see who gets the next notice.

"All these things and continued revenue declines and trends not getting any better made us have to make this really, really difficult decision...when it comes to labor," Etess said.

Slot machine revenue continues to decline, so in addition to more people being unemployed, the state, which gets 25 percent of all slot machine revenue, continues to get less and less every month.