MGM announced layoff of 18,000 workers
MGM Resorts International will lay off 18,000 of its furloughed workers. The layoffs are due to the prolonged state of quarantine. Additionally, as part of MGM’s nationwide downsizing plan, the MGM Grand Detroit will cut close to 1,100 jobs out of 2,800 workers who are employed there.
The casinos in Detroit resumed work on August 5 at 15% capacity. The restrictions are some of the strictest in the country, and after more than four months of being closed, venues continue to suffer from slow business.
Alex Calderone, managing director of the Birmingham-based Calderone Advisory Group, said, “Not only will the impact of the layoffs ripple through the rest of the economy, but the contraction in gaming revenues also means fewer tax dollars will be collected.”
The planned layoff of 18,000 represents a fifth of the MGM US workforce. The Washington Post cited a letter from chief executive Bill Hornbuckle, stating, “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.”
Despite the layoffs, the company is willing to take workers back on once business picks up again.
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