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Fontainebleau developer lays off 40 employees

LAS VEGAS, Nevada -- The company developing the $2.9 billion Fontainebleau Resort in Las Vegas laid off about 40 people Monday, or about 20 to 25 percent of its staff, a spokesman said.

These layoffs are on top of what potentially were thousands of construction workers laid off at the resort due to a funding dispute with banks. Some 3,300 construction workers were employed at the site prior to the funding dispute erupting last month, but that number appears to have dwindled to the hundreds as contractors maintain just skeletal staffs at the site.

Fontainebleau Las Vegas LLC itself continues to employ people in positions such as information technology, convention sales and construction and development, spokesman Dave Satterfield said.

Of the layoffs, he said, "This is a direct consequence of the banks pulling their funding."

Fontainebleau sued several banks, including Bank of America, last month over the funding dispute tied to an alleged, unspecified breach of the lending agreement by Fontainebleau. However, negotiations continue with Bank of America on the financing issue, Satterfield said.

Copyright © Las Vegas Sun. Inc. Republished with permission.

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