MGM Resorts layoffs: company says 18,000 people to receive notifications on Monday

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  • MGM Resorts announced to its staff on Friday its intention to lay off 18,000 employees from next week.
  • About 62,000 employees were laid off in March due to restrictions related to the COVID-19 pandemic.
  • “While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent,” CEO Bill Hornbuckle wrote in the letter to employees.
  • Visit the Insider home page for more stories.

MGM Resorts International told its staff on Friday that it would lay off 18,000 of its employees on leave in the United States as of Monday.

According to a letter from CEO Bill Hornbuckle to employees of MGM Resorts, the company employed 52,000 full-time and 18,000 part-time workers in the United States at the end of last year, Reuters reported.

“Federal law requires companies to provide a departure date for employees on leave who are not recalled within six months. Unfortunately August 31 is (that) date, ”Hornbuckle said.

Hornbuckle said the laid-off employees will remain on the company’s recall list and retain benefits and seniority if they are rehired by the end of next year.

“While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent,” Hornbuckle wrote in the letter.

In July, gaming revenue was down 39% from a year ago, a drop sparked by declining vacationers and visitors during pandemic restrictions, the Wall Street Journal reported.

Due to the pandemic, MGM had to close all of its casinos and lay off around 62,000 employees in the United States in March.

Tens of thousands of employees were rehired when restrictions related to the pandemic were relaxed and casinos were able to reopen. However, 18,000 of its workers will no longer be employed by MGM from next week.

MGM joins the growing list of companies laying off large numbers of employees.

The airline industry faces similar job cuts due to the pandemic, and American Airlines announced this week that it will cut 19,000 workers by October. United Airlines also said it would need to fire more than 2,800 pilots, or 21% of its total pilot workforce, if it did not receive additional help from the US government. The leave would be the largest of its kind in the company’s history.

Earlier Friday, Coca-Cola said it would cut thousands of jobs since sales slowed during the pandemic, Reuters reported.

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