The Venetian and Palazzo resorts, prominent fixtures on the Las Vegas Strip operated by Apollo Global Management, have recently announced a significant restructuring involving the reduction of their workforce. This move is part of a broader strategy to streamline operations and enhance agility within the rapidly changing hospitality industry. Despite the vast size of their workforce, which exceeds 8,500, the changes have affected fewer than 50 employees, signaling a targeted approach focused primarily on upper management and executive roles.
Strategic reduction for enhanced operations:
The restructuring at these renowned resorts involves a careful selection of roles, with the dismissal impacting individuals in high-level positions, including those in hotel operations, marketing, celebrations, banquets, group meetings, and casino hosting. This decision reflects a deliberate shift towards a leaner organizational structure that favors rapid decision-making and efficient management practices.
As the Las Vegas Review-Journal reports, the official statement from the resorts elaborates on their objectives: “As part of our commitment to delivering exceptional service and remaining agile in a rapidly evolving industry, we have made the decision to streamline our organizational structure. By reducing layers within our leadership, we can act more swiftly, make decisions more efficiently, and ensure a closer connection between our frontline teams and senior leaders.” This strategy is not only about reducing numbers but also about enhancing the quality of interaction and responsiveness between different levels of the organization.
Amidst these changes, the resorts are committed to supporting the affected employees. They are being provided with severance packages, which are carefully calibrated based on the employees’ roles, years of service, and level of seniority. Although the specifics of these packages are confidential due to nondisclosure agreements, they are designed to aid employees in transitioning during this period. Feedback from some of the affected staff has pointed out concerns regarding the adequacy of these packages.
Ongoing and future investments:
Concurrently with the layoffs, the Venetian is undergoing a $1.5 billion renovation, described as the largest and most expensive hotel renovation in history. This expansive project includes recent completions, like the first phase of the newly renovated Venetian Expo Center and a luxuriously updated high-limit room. The addition of a new Poker Room also marks a significant enhancement to the casino’s facilities.
In an innovative move, the Venetian has also partnered with Pechanga Resort Casino, a leading tribal casino in Southern California. This partnership is pioneering for the industry as it allows loyalty cardholders from either property to utilize and accrue benefits reciprocally, a first in the collaboration between a commercial gaming operator on the Strip and a tribal casino. Furthermore, the resorts are preparing for the upcoming termination of their affiliation with InterContinental Hotels Group, effective January 1, setting the stage for new alliances and operational frameworks.