MGM lays off 140 executives.
The ongoing pandemic has caused a significant amount of job losses in the casino industry. Recently, MGM Resorts International, a Las Vegas-based gaming company, announced the termination of 140 managerial positions. This follows the 18,000 employees they previously parted ways with in August. Due to a major drop in revenue, the future of the legendary casino operator remains uncertain.
Casinos and Hotels: Struggling to Stay Afloat
MGM, known for its renowned properties like the MGM Grand and the Bellagio in Las Vegas, explained that these job cuts were a result of the pandemic. Their venues are struggling to attract tourists, resulting in low sales. However, Brian Ahern, a spokesperson for the company, predicts that sales will recover once vaccines are widely distributed and other developments take place. He added that these are not permanent layoffs and that the terminated employees would be welcomed back when sales pick up.
The occupancy rates for the hotels are currently below 50 percent, and MGM's efforts to fill this gap have been unsuccessful. Last year, they offered rooms at ridiculously low prices just to attract customers, but this strategy had limited success. The company is positive that they will be able to resume normal operations soon, and employee numbers will increase accordingly. Those employees who have been let go have been informed and will continue to receive benefits like the MGM health plans and the MGM Employee Grant Fund.
The restructuring phase at MGM has drawn criticism from labor activists and unions earlier in August. MGM has reduced its workforce to 25 percent, with thousands of employees still on furlough. In Nevada, employers are required to inform furloughed employees of their termination date after six months of non-reinstatement.
MGM: Transition Period
It's unclear whether MGM will keep its promise of rehiring the dismissed employees when the crisis subsides. Further layoffs are also a possibility. As of now, Las Vegas is operating with a reduced workforce, and many are still on furlough. Nevada law mandates that employers notify furloughed workers of any termination dates.
MGM is presently examining the situation and making adjustments accordingly. They recently appointed Jonathan Halkyard as their new CFO, with Corey Sanders moving to the COO position in December. Similarly, Anton Nikodemus became the President of CityCenter, and Ann Hoff took over the role of President of Bellagio and Park MGM.
Despite these ongoing changes, MGM is pushing ahead with their sports betting brand, BetMGM. They signed a partnership with the Washington Nationals MLB team this week. With the merger of MGM and Entain in the works, BetMGM hopes to take a leading position in the US betting market. Online sports betting is currently on the rise, achieving record turnover and stakes in August 2020.
Mass Layoffs in the Casino Sector
In November, there were 1.5 million visitors to Las Vegas, a decline of 57 percent compared to the previous year. This led to more companies in the industry making significant reductions in their workforces. Penn National Gaming's M Resort cut 159 jobs, while Penn made over 400 layoffs in Las Vegas alone. Boyd Gaming reduced their staff by around 2,500, and the Cosmopolitan reported over 3,100 redundancies. Circus Circus and the Tropicana also saw hundreds of layoffs in the high three-digit range.
Apart from MGM and these companies, other large operators also experienced massive job losses in 2020. In Asia, Macau's gambling scene witnessed thousands of layoffs. In Europe, Genting UK led the way with over 1,600 dismissals. Casinos Austria and Novomatic AG also had hundreds of layoffs. While most operators are feeling the pressure, Gauselmann, the owner of Merkur, has managed to keep all its employees during the ordeal.
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Source: www.onlinecasinosdeutschland.com
