- MGM lays off workers
- Casino gaming-related revenue drops
MGM will lay off 779 employees and 18,000 previously furloughed workers from MGM Resorts International. MGM were required by law to give furloughed workers an answer by August 31. MGM employee layoffs are a move towards reducing their casino workforce after visits to land-based casinos, and Las Vegas in general dropped drastically due to coronavirus.
“While we have safely resumed operations at many of our properties and 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,” MGM CEO Bill Hornbuckle said in a memo to staff.
Hornbuckle also claims that these employees could potentially be rehired, if business were to pick up and resume normal operations.
“While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent. The fundamentals of our industry, our company and our communities will not change. Concerts, sports and awe-inspiring entertainment remain on our horizon,” Hornbuckle wrote in a letter to employees, reported CNN. The 779 employees recently laid off will retain their health benefits until September 30.
Las Vegas has begun reopening, but the area has seen significant drops in revenue as restrictions are still in place to prevent the spread of Coronavirus. Although online casinos have been experiencing a boom in business, the same can’t be said for land-based casinos.
MGM Employee Layoffs: Vegas by the Numbers
Since reopening, Las Vegas hasn’t experience the bustle and boom it’s used to. From June, only 1,065,100 people visited Vegas, compared to 3,607,400 in June 2019, according to the Las Vegas Convention and Visitors Authority.
Before June, casinos have been closed since March when Governor Steve Sisolak ordered Vegas casinos’ closure. In addition to casinos, the loss of conventions has also led to a huge hit for Las Vegas.
At this time last year, 498,800 people attended conventions, versus 0 people in 2020.
The weekend occupancy rate has dropped 42.8%, while the mid-week occupancy rate has dropped 51.8% from 88.7% the previous year. When it comes to direct visitor spending, 2018 brought in $34.5 billion for a total economic impact of $57.6 billion. When it comes to visitors in general, visitor volume in Las Vegas has dipped more than half, at 61%.
When it comes to casino-related revenue, revenue from the Las Vegas Strip is down 39.2%, while revenue from Downtown Vegas is down 20.6%. Casino gaming revenue is down 28.9% in Clark County, while revenue from the Boulder Strip is down 19.9%.
MGM is the largest provider of casino jobs in the United States.