Operator News
US – MGM’s 2020 vision described as a ‘blood bath’ as 254 lose jobs
By Phil - 29 April 2019
MGM Resorts’ decision to axe 254 members of staff as it looks to reduce its wage bill by $13m has been described as a ‘blood bath.’
The Las Vegas-based operator had announced an initiative in January called MGM 2020 whereby it would look to boost operating cash flow by $200m to as high as $3.9bn by 2020. Analysts believe the saving from these job cuts, which is believed to have included 100s of manager level positions, will be more than $13m a year.
CEO Jim Murren said: “I know this day is going to be difficult for everyone. I also know that changes like this can be stressful and I regret the impacts on the individuals whose roles are being eliminated. We would not be taking these steps if we did not believe they were necessary to serve the long-term interests of the company. We need to create a company that is streamlined, nimble and empowers leaders. If we want to unleash innovation and support dynamic new ideas, we need a new way of operating. These impacts are being felt across the company and this is a comprehensive change that is meant to be transformative.”
One employee, who didn’t want to be named, said to local press:“It was a bloodbath. I waited six hours to find out I’d been fired. They walked around pointing people out. Everyone was crying. Some of those laid off didn’t even bother cleaning out their desks.”
Mr. Murren added that another round of redundancies will come in the next few weeks. The company is due to announce its first quarter earnings later today.
