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MGM Resorts cutting 557 jobs in final round of layoffs

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. The panel was part of the inaugural symposium of the MGM Resorts Public Policy Institute at UNLV.

Updated Thursday, May 30, 2019 | 11:56 a.m.

MGM Resorts International announced today it is eliminating 557 more jobs in a “second and final round” of layoffs as part of a company reorganization.

The announcement comes a little more than a month after the gaming giant announced a first round of layoffs that impacted 254 employees. In addition, another 222 positions were eliminated incrementally after that, for a total of 1,033.

The company, which has about 77,000 employees and is the largest employer in Nevada, said almost all the cuts have been in Las Vegas and have overwhelmingly affected managers.

The changes are part of the MGM 2020 restructuring plan, 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.

“I stand behind the decisions we have made and believe them necessary to assure our future, but I deeply regret the impacts they have on individuals and their families,” company CEO Jim Murren said in a letter to employees.

“The changes we are making today bring us closer to concluding the foundational work of MGM 2020 during which we streamlined our operating model and reduced our salaried staff by over 12 percent,” he said.

After the first round of layoffs in April, MGM made “additional organizational changes to leadership structures that resulted in 222 individuals whose positions were eliminated,” Murren said.

Murren said the decisions of the last several months were made "deliberately, carefully and with gravity." As a result, MGM will be "stronger and better prepared for continued success and industry leadership in 2020 and beyond."

MGM spokeswoman Callie Driehorst said those impacted by the layoffs will receive a two-week notice period during which health care and other benefits will continue.

Employees will also receive two weeks of severance pay for every year of service with the company up to 26 weeks for salaried employees and 13 weeks for hourly workers. Career services will also be available for everyone affected.

The Associated Press contributed to this report.