Magna Layoffs Reportedly Tied To Racetrack, Gambling Losses

Magna Entertainment Corp. has "trimmed its head office staff in the wake of [Q3] losses at the racetrack and gambling operation," according to Greg Keenan of the Toronto GLOBE & MAIL, who notes the layoffs included VP/New Media Initiatives Andrew Gaughn. MEC Exec VP/Human Resources Don Amos would not confirm rumors that the layoffs "numbered more than two dozen and included most of MEC's marketing department." Amos said that the layoffs come "as the company places less of a focus on acquisitions and more emphasis on getting costs in line," adding, "We're just reorganizing." MEC, which intends to cut expenses by US$5M on an annualized basis starting in '04, is still "moving ahead with efforts to develop a new racetrack" in the Detroit area at a cost of $100-150M (GLOBE & MAIL, 11/11).