With over 1,000 MGM employees losing their jobs through the resorts retrenchment in the last few months, an online meeting between them in a bid to secure other jobs in the gaming industry has seen opportunities being spread out. During the first quarter earnings conference call, the giant casino sort to find ways in which the reduction of costs would be achieved in 2020. This was one of the steps in ensuring the target was achieved. It is projected that by 2021, the company will have an estimated $300 Million additional cash flow which would include the saved labor costs and adjusted earnings before EBITDA (Interest, taxes, depreciation and Amortization)
Cory Sanders, MGM Chief Financial Officer, said that the move, which was supported by other 35 company executives, would see the company save labor costs amounting to $100 Million. This includes fixed costs of $80 Million and other variable costs that amount to $20 Million. With the company boasting over 77,000 employees in the 9 resorts they own in Las Vegas Strip, the executives said that the job cuts would happen in all casinos.
#254strong & MGM 2020 Network
With Nevada creating 3,600 leisure and hospitality jobs in 2018, there is high competition in these slots and with an additional figure of over 1,000 retrenched employees, securing a job becomes even harder. This has led the employees to mobilize themselves using a hashtag #254strong on LinkedIn.
This hashtag has been followed with numerous posts and has gained traction according to Mali Catello who is a former MGM employee. Catello has also gone ahead to create an official group dubbed MGM 2020 Network with the same aim of mobilizing the laid-off employees. In a post, she says, ‘If you are one of the 1,000 brilliant colleagues recently laid off from MGM, please join the group.’
She proceeds on to say,
‘I know the hashtag does not reflect the number of affected people, however, it has gained traction and you are all welcomed.’
‘Positions not easily found in Las Vegas’
April 2019, saw 254 managerial positions eliminated and in May 2019, further 800 positions were eliminated. Catello claims that the managerial positions are not ‘positions that are easily found in Las Vegas.’
With the aim of their connecting being to search for jobs, there are 814 results turned up from MGM homepage after a quick job search where open positions that range from front desk to other executive positions are almost 600 in number. With some of the employees expected to hesitate in reapplying to jobs they were laid off, LinkedIn has seen the users sharing gaming industry opportunities and some of them have included executive chef positions in Las Vegas and Wisconsin which have a handsome pay of $120,000 plus bonuses. Other opportunities that have been posted include a player development director at some casino in the northeast that has a promise of $125,000 in compensation plus benefits and a chief marketing officer at the same casino that has a salary going for about $200,000.
More jobs are being posted and it is the hope of Catello among the rest, to find a place they can call home again.