- MGM Resorts officially laid off about 18,000 employees on Monday, citing that the decision was in response to the ongoing pandemic.
- The decision reduces the company’s domestic total workforce by around 25%.
- The highest number of layoffs by location occurred on The Strip.
- MGM CEO Hornbuckle is optimistic that the US gaming industry will recover, leading to the return of the laid-off workers back to their positions.
MGM Resorts officially laid off approximately 18,000 workers on Monday. The country’s largest casino worker-employer said the decision is in response to the ongoing pandemic.
MGM Resorts had 70,000 employed workers in the country before the coronavirus pandemic struck.
The company had informed the affected employees last week that their furloughs would turn out to be permanent job terminations effective Monday, August 31. The decision drops MGM’s domestic employment total by around 25%.
In a letter to the impacted workers, CEO Hornbuckle said that while the company has safely resumed operations at several of their “properties and have returned tens of thousands” of their colleagues to work, the pandemic continues to impact the gaming industry in the country. He added that the company hasn’t “returned to full operating capacity.”
Hornbuckle took over from Jim Murren, who resigned as MGM Resorts CEO to lead Silver State Gov. Steve Sisolak’s COVID-19 response task force.
Job Losses by Location
As individual casinos confirm the pink slips, details about the locations experiencing the MGM job losses are emerging.
1,100 workers have received permanent job termination at MGM Grand Detroit, reducing the casino’s workforce by almost 40%. The job cut at Empire City Casino is 1,100 people. MGM bought the New York racino for $850 million last year.
3,100 workers at Borgata in Atlantic City are going for good. The casino is the wealthiest in New Jersey. Last month, Borgata reported to the Division of Gaming Enforcement that the resort has 5.449 employees. Therefore, the 3,100 layoffs account for 57% of the workforce the property had before the pandemic.
MGM Springfield, MA, laid off 1,000 workers, while MGM Northfield Park, OH, and MGM National Harbor, MD, released 900 and 800 employees, respectively. MGM Resorts’ Gold Strike and Beau Rivage casinos in Mississippi also cut jobs.
However, the Las Vegas Strip casinos belonging to MGM incurred the heaviest job cuts. About 10,000 people have lost their jobs in this location. Some MGM casinos on The Strip include Aria, Bellagio, The Mirage, New York-New York, Mandalay Bay, MGM Grand, Luxor, Park MGM, and Excalibur.
The Workers Could Return
Hornbuckle’s letter to the affected workers showed how he was optimistic about the US gaming industry recovering rapidly after the pandemic. He said the current reduced workforce is temporary.
Federal law requires companies to give a formal termination date to workers who have been furloughed for over six months. For MGM’s furloughed workers, the sixth month came on August 31. However, the fired employees will continue receiving health benefits through September.
In case the industry recovers and MGM rehires the fired workers before 2021, they will occupy their former seniority levels.