Companies that announced Major Layoffs and Hiring Freezes
Permanent Cuts to hit many employees in MGM entertainment division and other casinos.
A “large number” of workers working in the sports and entertainment division of MGM Resorts International are expected to be laid off permanently at the end of August. Leading to coronavirus closures halting most entertainment activities.
“When our properties were closed in March, we were hoping our closure would be brief, and that we would soon return to satisfying our guests,” Division president George Kliavkoff wrote in a letter to staff. “Based on the health data that we now have, we do not believe it will be fully secure to restart the show before August 31.”
Yet some of these furloughs may become permanent cuts. It is according to a letter from the organization sent to jobs officials in Nevada last week.
MGM Resorts Cannot Guarantee the Jobs:
MGM Resorts cannot guarantee the jobs of the workers. This is due to the uncertain existence of COVID-19 and how it may progress in the coming months.
On Monday, the MGM spokesperson acknowledged the authenticity of the message. But refused to specify how many workers will lose jobs. In a statement, the company added that it continues to “coordinate with elected authorities and look forward to the period when we will bring back staff to help our entertainment initiatives and re-launch entertainment for our attendees.”
MGM Resorts, which runs a dozen properties in this gaming and entertainment hub, has projected a bleak financial life: a major decline in sales, cancellation and non-booking at hotels, restaurants and entertainment centers – as well as postponement and cancellation of conference bookings.
The distribution of COVID-19 phased stock rates for Las Vegas casino companies like MGM Resorts. At the end of February, the company’s stock price lingered near $32 per share. Today’s stock is less than half of that.
Most of MGM’s Strip resorts have re-opened at reduced capacity. It is after roughly 80 days of lockdown due to coronavirus concerns. However, a small number of properties – which include Mirage and Park MGM – remain closed.
Businesses Back on Track:
Although several businesses plan to re-open on June 1, as estimated by the Nevada government. Steve Sisolak has not ruled out the re-establishment of more stringent anti-virus policies if there is an increase in new COVID-19 cases or hospitalizations.
Nevada launched the first phase of its COVID-19 recovery strategy, softening the closure of some non-essential facilities in mid-March. Sisolak has yet to have a concrete timetable for progressing to the second step of the re-opening plan.
Furloughed or laid-off workers may apply to take advantage of the MGM financial assistance program designed to help pay for expenses such as rent, grocery and utilities, the company said.
Workers separated from the organization in August would be eligible for the plan until November 29, said the company. By Monday, the Fund had distributed more than $11 million in emergency grants.
Many Las Vegas Strip casinos told furlough workers about potential permanent cuts. It is due to the COVID-19 pandemic effect on the casino industry.
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