PECHANGA INDIAN RESERVATION -- One of Southwest County's biggest employers soon will be laying off hundreds of its workers.

Officials at the Pechanga Resort & Casino, located on the reservation along Temecula's southern border, announced Tuesday that a slow economy has resulted in the need to eliminate an estimated 400 employees from its work force of 4,770. The layoffs are expected to begin in August, Pechanga officials said.

"For months, we have resisted the pressure to lay team members off; but because of the prolonged economic downturn, we must downsize in order to adjust to the current market conditions and position ourselves for success once the economy recovers, " Amy Minniear, president of the Pechanga Development Corporation said in a written statement.

The corporation operates one of the state's largest and richest casinos.

Minniear said that while a definite number of layoffs has not been determined, she anticipated approximately 400 employees to be affected -- about 8 percent of the work force.

"We are developing a comprehensive severance package, including outplacement services, to make the transition as easy as possible," she added.

The layoffs at Pechanga Resort & Casino come as another large blow to the region's employment sector within the last seven months.

In December, Abbott Laboratories cut 700 jobs at its factory on Ynez Road in Temecula, the largest-scale layoff in several years for an area whose economy is fighting to overcome a weakened construction industry and record numbers of foreclosures.

Abbott remains the city's largest private-sector employer, with about 4,000 employees, approximately the same number as two years ago.

In April, reports surfaced that Bianchi International, known worldwide as a leading manufacturer of high-quality handgun holsters and accessories, will be leaving Temecula this fall. The closure of the Bianchi facility, which began manufacturing in the city in the 1960s, is expected to result in the loss of 230 jobs.

Pechanga's announcement of layoffs comes after the casino won the right to increase the number of its slot machines from 2,000 to 7,500 when voters in February approved the new agreement between the tribe and the state.

According to the terms of the new compact, Pechanga's annual payment to the state's general fund is a minimum of $42.5 million, up from the $29 million minimum under the previous arrangement.

Contact staff writer Nicole Sack at (951) 676-4315, Ext. 2616, or nsack@californian.com.