February 3rd, 2009

red down arrow

Business Bad News of the Day

Casino operator Wynn Resorts Inc announced today that it needs to cut salaries of Las Vegas workers and take other measures to reduce costs. Wynn also said it needs to reduce work weeks for full-time hourly employees, eliminate 2009 bonus accruals and suspend employer match of 401(k) contributions. The company expects to save about $75 million to $100 million a year.

Walt Disney Co. reported today that first fiscal-quarter profit that fell substantially short of analysts' expectations on lower DVD sales and a drop in advertising sales at its broadcast and cable television networks, sending the stock to a 10% decline in after-hours trading.

Auto sales tumbled 38% in January, plunging even more than expected to their worst levels since 1982 as a pullback in purchases by rental car companies became the latest problem for the troubled industry.

Video game publisher Electronic Arts says its third-quarter loss widened because of a slew of charges and weak holiday sales which the CEO called "a clear disappointment."The  Redwood City, Calif.-based company, which has locations in Canada, also unveiled more cuts, saying it would now lay off a total of 1,100 jobs, or about 11 per cent of the workforce, and close 12 facilities.