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August 25, 2019

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MGM laying off 254 employees with more cuts coming

Reid And Boehner on Public Policy Panel

Steve Marcus

Jim Murren, chairman and CEO of MGM Resorts International, speaks before a public policy panel discussion at the Bellagio Tuesday, April 23, 2019.

Updated Thursday, April 25, 2019 | 5:06 p.m.

MGM Resorts International is laying off more than 250 employees today across the U.S., according to a letter from the company’s CEO.

Most of the employees are in management positions and all are nonunion jobs, an MGM spokesman said. The company did not indicate how many of the impacted workers were in Las Vegas.

Sent to MGM employees this morning, the letter from CEO Jim Murren said 254 employees would be laid off, with an additional round of cuts to be announced “in a few weeks.”

The changes are part of the company’s MGM 2020 reorganization effort, which expects to deliver the company an annual adjusted EBITDA (the earnings before interest, tax, depreciation and amortization) uplift of $300 million — $200 million by the end of 2020 and an additional $100 million by the end of 2021. The effort was announced in January.

“We need to create a company that is streamlined, nimble and empowers leaders,” Murren said in the one-page letter. “From the beginning, we have been transparent that our strategy would include reskilling, reorganization and — regrettably — a reduction in our workforce.”

MGM shares closed the trading day on the New York Stock Exchange on Thursday down just slightly at $27.75 per share.