MGM Resorts fires 26.47% of workers
As Coronavirus continues to wreck havoc with the global travel segment, MGM Resorts International isn’t immune to the economic slowdown. The 18,000 job cuts announced last week start to take effect on Monday 31st August 2020 impacting 1 in 4 of their US workforce.
The furloughs of a majority of staff in March 2020 weren’t enough to save the 18,000 furloughed workers. MGM will extend health benefits for the sacked employees until 30th September 2020. It’s surprising the cuts aren’t higher as WSJ reported MGM Resorts reported a 91% drop in revenue.
MGM Resorts Chief Executive Bill Hornbuckle said they are required by US federal law to send layoff notices to furloughed workers who haven’t been recalled after 6 months. MGM said there are still plans to rehire those workers as business demand returns in 2021.
“While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent,” Mr. Hornbuckle wrote. “The fundamentals of our industry, our company and our communities will not change. Concerts, sports and awe-inspiring entertainment remain on our horizon.”