Operator News
US – MGM prepares to layoff 18,000 members of staff with promise to rehire
By Phil - 1 September 2020
MGM Resorts International has started the process of laying off 18,000 employees across the US, equating to about a quarter of its domestic workforce.
Federal legislation dictates that companies must send layoff notices to furloughed employees that have not been brought back after six months.
MGM Resorts CEO Bill Hornbuckle said the operator would rehire workers when it could.
“While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent,” Mr. Hornbuckle said. “The fundamentals of our industry, our company and our communities will not change. Concerts, sports and awe-inspiring entertainment remain on our horizon. Our near-term operating environment will remain challenging and unpredictable as COVID-19 case trends, health and safety protocols, and travel restrictions continue to heavily impact our business. The long-term fundamentals of our business and the broader industry remain intact,” he added. “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.”
MGM furloughed 62,000 of its 70,000 employees following the casino closures in Las Vegas on March 17. It has reopened casinos in Las Vegas, Mississippi, Massachusetts, Michigan and New York but is operating at a 50 per cent capacity.
