MGM Resorts Lays Off 18,000 Employees | Financial Buzz

MGM Resorts Lays Off 18,000 Employees

MGM Resorts International (NYSE: MGM) revealed on Friday it is laying off the 18,000 U.S. employees it had previously furloughed amid the coronavirus pandemic. MGM employed 70,000 people within the U.S. at the start of 2020. 

“Nothing pains me more than delivering news like this,” CEO Bill Hornbuckle wrote in the separation letter to employees. “The heart of this company is our employees and the world-class service you provide. Please know that your leadership team is working around the clock to find ways to grow our business and welcome back more of our colleagues.”

The global hospitality and entertainment company has experienced turmoil as tourism and travel declines and its New York and Las Vegas locations remain closed. 

“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,” Hornbuckle explained in a memo to staff.

Hotel occupancy dropped 43% compared to the prior year. Causing rates at the MGM Resorts’ MGM Grand and Caesars Entertainment Inc.’s Paris to tumbled to USD50 a night.

However, MGM promised health benefits for the furloughed employees until September 30 and vowed to maintain seniority for those employees recalled before the end of the year. 

As federal law states that employees must be granted a separation date if furloughed for more than six months, August 31 signifies that mark for the MGM staff.