MGM Resorts cuts 557 positions in the final stage of strategic layoffs

By Matthew Enderby

In the last wave of contract terminations, part of the MGM 2020 plan, MGM Resorts International has eliminated 557 positions in a company-wide cost reduction effort.

MGM Chairman and CEO Jim Murren wrote a letter to employees explaining the job reductions were expected to save the company $100m in labour costs.

Murren said in the letter: "I want to assure you the decisions of the last several months were made deliberately, carefully and with gravity.

"Having done this foundational work, we will be stronger and better prepared for continued success and industry leadership in 2020 and beyond."

A spokeswoman for MGM is reported by CDC Gaming Reports to have said the eliminated positions were overwhelmingly management jobs.

In his letter, Murren said fired employees would be offered other options in the company, if they existed, and healthcare benefits would continue to try and help ease the "life-changing transition."

The healthcare will remain in place for two weeks, with employees to receive two weeks of severance pay for every year of service, totalling 26 weeks.

On 30 April, in an earnings conference call, MGM CFO Cory Sanders said the operator would be eliminating more than 1,000 positions as part of its MGM 2020 initiative. After yesterday’s stage of the initiative, 1,070 jobs have now been cut.

During the call, Sanders also said 35 executives have taken part in a voluntary retirement program, including his predecessor, former CFO Dan D’Arrigo.  

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