Jackson downsizes Neverland

Michael Jackson has laid off his staff and scaled down operations at his Neverland ranch, after narrowly avoiding a labour lawsuit.

Jackson has "decided to close his house and reduce his workforce," Raymone Bain, a spokesperson for the reclusive pop star, announced in a statement late Thursday.

"Reports indicating that Neverland has been closed or 'shut down' for good are inaccurate," Bain added, saying that the ranch is still operating on a limited basis.

While Bain did not specify numbers, certain U.S. media outlets are reporting that the ranch's entire staff of more than 60 workers were called in Thursday to receive back pay and then laid off.

The announcement came a day after Jackson, who is currently residing in Bahrain, agreed to pay the back wages to his Neverland employees, thus avoiding a lawsuit by the California Department of Industrial Relations.

The state fined Jackson $100,000 US and threatened to sue him after investigating claims that Neverland employees were owed more than $300,000 US in pay for work dating back to December 2005. The singer was initially given a Tuesday deadline, which was later extended to Wednesday, to pay the overdue wages.

Labour officials also discovered that Jackson had let his workers' compensation insurance lapse, so a stop-work order was issued for the ranch.

A statement from California's Department of Industrial Relations said that the singer's family members were handling security for the ranch. Officials also said that the menagerie of animals Jackson keeps at the Neverland zoo were being cared for by a local veterinarian and his staff.

Last June, Jackson was acquitted of sexual abuse charges. During the trial, prosecutors said that the pop singer faced mounting debts and other financial problems.