Jul. 31--Five days after reporting disappointing second-quarter earnings, Station Casinos laid off 40 people Monday, or an estimated 10 percent of the work force at its corporate offices. 

Company officials attributed the across-the-board layoffs of mid-level managers to weakening trends in the local economy during the past 18 months. 

The moves are designed to save the locals gaming giant $1 million to $2 million annually, although it will pay an undisclosed amount of money for severance packages. 

The company has an estimated 11,000 employees, and operates seven major neighborhood casinos in Las Vegas and Henderson. 

"You're working shoulder to shoulder with some very talented people," said Station Casinos Chief Financial Officer Glenn Christenson. "These are decisions that are made under very difficult circumstances, but we have fiduciary responsibilities to many constituencies. 

"Making changes that require the loss of good people is unfortunately part of operating a business." 

Station Casinos shares were up 23 cents Monday on the New York Stock Exchange to close at $14.61. 

Last week, the company reported a 7 percent decline in second-quarter cash flow with a variety of problems causing the decline, including competitive pressures in the North Las Vegas and Boulder Highway casino markets, higher energy costs, troubles at the recently acquired Fiesta and the December sale of a pair of Missouri casinos. 

Among the layoffs was corporate spokesman Jack Taylor, who will leave his job after seven years with the company. 

"I think Station is an excellent company still, and will continue to grow and will continue to do what it is doing best, provide good entertainment in town," Taylor said. 

The layoff of the 55-year-old executive took effect immediately, although Taylor said he planned to work through Wednesday. 

He previously worked 21 years for a St. Louis public relations and advertising firm, where his accounts included Anheuser Busch Inc., the Missouri lottery and the General Mills restaurant group. 

The layoffs include positions from a variety of departments: reservations, information technology, human resources, and food and beverage. 

"To the extent we can find places for them in the organization we will attempt to do that, specifically at Green Valley Ranch," Christenson said. 

The Green Valley casino is scheduled to open in December and is a joint venture with Green Valley developer American Nevada Corp. 

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