Thirty people laid off
The firings last week of 30 Downtown Project employees has caused concern in Downtown Las Vegas, which many believed was in the midst of a full-on economic renaissance due to the efforts of business leaders like Tony Hsieh, who relocated his Zappos online retail company here and also bought up a lot of real estate in the vicinity.
“What you’re going to see is places start closing,” a Downtown business owner told the Las Vegas Sun. “They 100 percent missed the mark. They’re trying to make people believe they’re making money when they’re not. You can’t force growth.”
“I’m legitimately shocked,” said Christopher LaPorte, owner of an arcade bar on Fremont Street. “But really, Downtown has been challenging for about a year now.”
In 2011, the $350 million Downtown Project was launched to revitalize and expand Downtown Las Vegas and make it a hub for the tech industry. In a statement on the layoffs, Downtown Project officials they are streamlining operations.
“Doing so requires that we restructure our operations and focus on follow-on investments,” the statement said. “We are optimistic and confident about the future of downtown Las Vegas and the continued growth of our entire portfolio of investments.”
Technology news site Re/Code reported that Hsieh was stepping down as the project’s leader, but Hsieh said he has never considered himself in charge of day-to-day management of the project and that his role “as an investor, advisor, and equivalent of a board member.”
While some fear the news will have a discouraging effect on local business, La Porte said that’s the wrong response. “My thing is: Don’t cry over spilled milk. Keep your eyes to yourself, and make sure you keep focused and keep trudging along,” he told the Sun. “We shouldn’t be relying on someone like Tony Hsieh. My business doesn’t rely on whether he succeeds or the Downtown Project succeeds.”
