UPDATED: Mohegan Sun to pay up to $10M in job cuts

MOHEGAN — Costs associated with severance packages for the more than 300 Mohegan Sun employees it’s laying off will total between $8 million and $10 million, the Mohegan Tribal Gaming Authority said in a filing this week with the U.S. Securities and Exchange Commission.

The authority laid off 282 employees last week and said it will lay off another 46 at the end of October, when it closes the casino’s Birches restaurant.

In its SEC filing, the authority attributes the “workforce reduction” to “an effort to further streamline its organization and better align operating costs with current market and business conditions.”

Most of the severance costs, which will result in cash payments, will be recorded in the fourth quarter of the authority’s 2012 fiscal year, which ended Sept. 30, the authority said.

Under the severance packages, employees will receive two weeks’ pay for each year of service up to a maximum of 32 weeks’ pay, as well as health benefits for the duration of the payments. For example, an employee eligible for 32 weeks’ pay will receive benefits for 32 weeks. The minimum benefit is four weeks’ pay.

The SEC filing, posted online Tuesday, also announces that Jeffrey Hartmann “is no longer with the company,” effective Sept. 26, and that Robert J. “Bobby” Soper, president and CEO of Mohegan Sun at Pocono Downs in Wilkes-Barre, Pa., will take over Hartmann’s post on Oct. 22.

In the interim, Mitchell Etess, the authority’s CEO, and Raymond Pineault, Mohegan Sun’s chief operating officer, “will assume the responsibilities of this position,” according to the filing.


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