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MGM Resorts Announces It Will Lay Off 18,000 Employees

Layoffs Will Be Implemented Nationwide, But Most Will Affect Las Vegas Casinos

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MGM Resorts announced Friday that it will be permanently laying off nearly a quarter of its entire workforce.

The Las Vegas-based gaming giant says it will let go of about 18,000 employees nationwide as the COVID-19 pandemic continues to hurt the entertainment and gaming industry. The company employs a workforce of about 70,000.

In mid-March, the company shuttered its properties in response to the spread of coronavirus throughout the U.S. and furloughed about 63,000 workers. After about six weeks of forced closure, it warned that those furloughs may become permanent if conditions didn’t improve.

State governments began allowing brick-and-mortar casinos to reopen later that month, with Nevada giving its operators the green light to resume business on June 4, but at reduced capacity. The capacity restrictions have led to fewer gamblers on the gaming floor and ultimately less revenue.

“While we have safely resumed operations at many of our properties and have returned tens of thousands of our colleagues to work, our industry – and country – continues to be impacted by the pandemic, and we have not returned to full operating capacity,” said MGM Resorts CEO Bill Hornbuckle in a memo to staff.

According to a report from Bloomberg, the layoffs will take place all over the country, but that the layoffs will be mostly concentrated to the Las Vegas market, where the company has its biggest footprint.

The move continues the trend of downsizing its Las Vegas workforce. In May, the company laid off four Las Vegas Strip hotel presidents and delegated those responsibilities to the presidents of the remaining Strip properties.

As casinos begin to see what the gambling market looks like during a pandemic, there is a clear trend that those in a tourist destination will be hit harder than properties that rely on local regulars to fill its building.

In Nevada’s most recent revenue report, the Strip casinos saw a much steeper percentage drop in its gross gambling revenue than other areas of the state.

MGM Resorts owns nine casinos on the Las Vegas Strip. All but one, Park MGM, have either announced reopening dates or are already back in business. The company also owns two in Mississippi and one in Atlantic City, Detroit, Maryland, Ohio, Massachusetts and New York.

It’s New York casino, Empire City Casino, is also closed as Gov. Andrew Cuomo has yet to announce a timeline for the gambling industry to resume.

 
 
Tags: Casinos,   Nevada,   Las Vegas,   MGM Resorts