MGM Resorts to lay off 18,000 furloughed workers in U.S. as virus hampers business
(Reuters) – Casino operator MGM Resorts International <MGM.N> informed its staff on Friday it would lay off 18,000 furloughed employees in the United States as the coronavirus-induced travel curbs hurt its operations.
The company will start the process on Monday, according to a letter from Chief Executive Officer Bill Hornbuckle to employees and seen by Reuters. MGM employed nearly 52,000 fulltime and 18,000 part-time people in the United States as of Dec. 31.
“Federal law requires companies to provide a date of separation for furloughed employees who are not recalled within six months. Regrettably, August 31, marks (that) date,” Hornbuckle said in the letter.
Many companies have decided to cut jobs as the U.S. economy recorded its sharpest contraction in at least 73 years in the second quarter due to pandemic-led disruptions, with corporate profits sinking deeper.
MGM was forced to close all of its casinos and furlough about 62,000 of its workforce in the United States in March due to the lockdowns.
It brought back tens of thousands of employees when many of its casinos opened for business as the restrictions eased, but it still had to leave out 18,000 of them.
11 PHOTOSMGM resortsSee GalleryMGM resorts“Las Vegas, USA – August 19, 2009: The MGM Grand hotel and casino of Las Vegas is seen here behind palm trees of the neighboring Tropicana Hotel and Casino.The MGM Grand is one of the largest hotels in the world with over 5,000 rooms available for guests.”Las Vegas, Nevada, USA – December, 2016: Golden Lion at MGM Grand Hotel and CasinoBellagio Hotel and Casino at NightFountains of Bellagio, Bellagio Resort and Casino,Las Vegas, Nevada – April 11, 2015: The famous fountains in action at the Bellagio Resort and Casino in Las Vegas, Nevada on a mildly cloudy. These large dancing water fountains are synchronized to music and play on the half hour both during the day and at night. Las Vegas – June 29: Aria hotel and sign at the City Center on Las Vegas Boulevard on June 29, 2015 in Las Vegas.ARIA Las Vegas is the epitome of luxury casino resorts – featuring luxury suites, expansive views of the Las Vegas Strip, while be central to things to do in Las Vegas.Las Vegas, Nevada – May 28, 2018 : The Aria Resort and Casino in Las Vegas city in NevadaLas Vegas, USA – May 25, 2013: The entrance to the Aria hotel with a large lion sculpture at night.Las Vegas, Nevada, USA – May 27, 2013: Day time aerial view of the neon illuminations of Las Vegas Strip in Nevada. Showing predominantely Aria Casino and Hotel.Las Vegas, Nevada, USA – September 14, 2011: Mandalay Bay Hotel and Casino on the Strip in Las Vegas. Row of tall palm trees on the foreground and the afternoon sun illuminating the golden panels of the building. No people in the image“Las Vegas, USA – August 19, 2009: The Mandalay Bay Resort and Casino opened in 1999 in Las Vegas, Nevada.Seen here is the reflective gold colored exterior of the 44-story tall main building.”Up Next
Hornbuckle said that employees who will be laid off will remain in the company’s recall list and if hired back by the end of 2021, they shall retain their seniority and benefits.
Earlier in the day, Coca-Cola <KO.N> said it would cut thousands of jobs as sales had slumped, while United Airlines <UAL.O> confirmed it was preparing for the biggest pilot furloughs and will need to remove 2,850 pilots this year.
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