Friday, Aug. 28, 2020 | 10:09 a.m.
MGM Resorts International will lay off 18,000 furloughed employees nationwide on Monday, company officials said.
In a letter to employees dated today, CEO Bill Hornbuckle said he “understands the impact this will have on these employees and their families,” but the uncertain future of the resort industry and drop in business from the COVID-19 pandemic made the move necessary.
It’s unknown how many employees in Las Vegas will be laid off. MGM employed about 52,000 people in Las Vegas before the pandemic.
“For the protection of workers, federal law requires companies to provide a date of separation for furloughed employees who are not recalled within six months,” Hornbuckle said in the letter. “Regrettably, Aug. 31 marks the date of separation for thousands of MGM Resorts employees whom we have not yet been able to bring back.”
“While we have returned tens of thousands of our colleagues to work, our industry — and country — continues to be impacted by the pandemic, and we have not returned to full operating capacity,” Hornbuckle said.
For those enrolled in MGM health care plans, coverage will extend through the end of September, according to the letter.
As business demand grows, laid off employees could still be brought back, the letter said.
“The employees separated on Aug. 31 will remain on our recall list, and we’ve established a seamless system to bring them back based on business needs, position and seniority,” Hornbuckle said.
Those who return by Dec. 31, 2021, would retain their seniority status and immediately resume their previous benefits coverage, the letter said.
Laid-off workers will remain eligible for financial support through the MGM Employee Emergency Grant Fund through Nov. 29.
To date, more than $12 million in emergency assistance has been paid out to affected MGM employees since the start of the pandemic.
Despite the announcement, Hornbuckle said he remains upbeat about the future of the casino resort industry.
“I truly believe that the challenges we face today are not permanent,” he said. “The fundamentals of our industry, our company and our communities will not change. Concerts, sports and awe-inspiring entertainment remain on our horizon. Trust me, we will bounce back from this — strong and better than ever.”
