Things still don’t look good for the leisure and hospitality industry, the worst-hit sector, as MGM Resorts International announces it intends to send separation letters to 18,000 furloughed employees throughout the US, reported CNBC.
MGM’s job cuts start next week, represent about a quarter of all the company’s pre-pandemic US workforce of 68,000.
“Nothing pains me more than delivering news like this,” MGM’s CEO Bill Hornbuckle wrote in the separation letter to employees.
“The heart of this company is our employees and the world-class service you provide. Please know that your leadership team is working around the clock to find ways to grow our business and welcome back more of our colleagues,” Hornbuckle said.
MGM’s Empire City in New York state and Park MGM in Las Vegas remain closed. Casinos in Las Vegas are all operating at limited capacity with large declines in tourism and travel to the Las Vegas Strip.
The company will extend health benefits for furloughed employees until September 30.
“Federal law requires workers to be given a separation date if they’re furloughed for longer than six months. Aug. 31 marks six months of administrative separation for the furloughed MGM employees,” said CNBC.