MGM Resorts to Lay Off 18,000 Employees

MGM Grand Las Vegas April 2 2020
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The move follows the Las Vegas casino operator failing to rebound fully after furloughing its workforce amid the novel coronavirus pandemic.

MGM Resorts International is set to lay off 18,000 furloughed workers in the U.S. as its casino and hotel reopening faces continuing impact from the global COVID-19 spread.

The holding company for the Las Vegas casino and hotel operator in an Aug. 28 letter to employees obtained by The Hollywood Reporter said MGM Resorts had not yet "returned to full operating capacity" after furloughing its U.S. workforce six months ago as the virus crisis gathered pace.

MGM Resorts added that federal law required the company to offer a separation date for furloughed workers, which would be Aug. 31.

The gambling giant, which emerged from a months-long shutdown of its U.S. entertainment properties amid the virus crisis, was careful to note that it intended to recall former workers as the economic climate brightened post-pandemic.

"While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent. The fundamentals of our industry, our company and our communities will not change," MGM Resorts CEO Bill Hornbuckle said in the internal letter.

The job cuts also follow Barry Diller's IAC/InterActiveCorp. investing $1 billion in MGM Resorts and the Hollywood mogul taking a seat in its boardroom Aug. 20.