Massive layoff at famous gaming giant after the pandemic
MGM Resorts stated on Friday that it will permanently dismiss almost a quarter of its employees. The popular gaming giant based in Las Vegas stated it will lay off about 18,000 employees worldwide due to the present pandemic, which continues to have a drastic effect on gaming and the entertainment industry. It is essential to know that MGM Resorts has a workforce of about 70,000 employees.
MGM Resorts shuttered its properties due to the COVID-19 pandemic throughout the United States in March and also furloughed about 63,000 employees. After a month and two weeks, the gaming giant stated that the furloughs may remain permanent if things to improve.
During the easing of the lockdown, the state government allowed gaming casinos to reopen a months’ later. Nevada was one of the states to allow gaming and entertainment companies to reopen in June, but at a reduced capacity. However, the reduced capacity led to fewer gamblers on gaming sites which also led to a lesser revenue for these casinos.
However, Bill Hornbuckle – the CEO of MGM Resorts – in a memo to staff stated: “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.”
According to a report by Bloomberg, the dismissal of employees will take place all over the United States but will be concentrated in Las Vegas, where MGM Resort makes its most revenue.
Hornbill also added: “Nothing pains me more than delivering news like this. 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.”
MGM also added that it will extend health benefits for furloughed employees until September 30. It also assured workers who are called back that they will retain their position.
In the memo to staff, Hornbill also stated: “We are working diligently to minimize the impact on our employees through furloughs and layoffs which will begin next week.”
According to MGM Resort official website, the company has thirty hotel and gaming sites globally and employs 83,000 people.
Hornbuckle also stated that lots of those employees tested positive for coronavirus, although he didn’t state the locations.
As casinos and gaming companies begin to see the outcome of the market amidst the pandemic, there is a clear trend that those in tourist destinations will be affected more than properties that rely on local regulars to fill-up the building.
In a report by Nevada, most strip casinos have a bigger loss in their gross gambling revenue than casinos in other states.
It is also essential to know that MGM has nine casinos in Las Vegas. All of them haven’t revealed their opening dates yet, except for one: Park MGM. The gaming giant also owns two in Mississippi and one in Atlantic City, Detroit, Maryland, Ohio, Massachusetts and New York
Nevertheless, the announcement by MGM resort means troubled times for Las Vegas. The city’s businesses and conferences have suffered a series of cancellations as a result of the present pandemic – which means loss of revenue of the notable city.
As more cases of COVID-19 still rises daily, MGM Resorts hope things go back to the way it was. The company hopes to hire back its employees by 2021, and promised they would retain seniority and benefits.