MGM Resorts says layoffs could be coming with lower tourism expected
LAS VEGAS (KSNV) — MGM Resorts could lay off employees as it plans for significant drops in tourism for the rest of the year, according to a letter from the company's acting CEO.
Executives are forecasting lower visitor rates through 2020 and possibly early 2021 because of the coronavirus outbreak, Bill Hornbuckle wrote in the letter sent to workers.
"We hoped that a significant portion of our operations would bounce back by the summer," the letter says. "However, that outlook has continued to evolve as COVID-19 cases spread throughout the world. Based on the current situation, we now believe that some of our colleagues may not return to work this year."
Hornbuckle says the company would welcome back employees "when our industry bounces back," though he acknowledges people could find permanent employment someplace else.
All furloughed employees will continue to receive health benefits through Aug. 31, according to the company.
The MGM emergency grant fund has also passed $13 million, and the company is still processing grants for employee expenses, Hornbuckle says.
"While we're hopeful that our industry’s recovery will be swift, we now believe that it may take some time for business to return to pre-pandemic levels," MGM Resorts said in a statement. "We’re committed to being as transparent with our employees as possible, so they can plan accordingly and do what is best for themselves and their families."
Nevada Gov. Steve Sisolak's order closing all of the state's casinos is set to run through May 15. The governor has said reopening gaming venues would come in the later phases of the state's reopening plans.
Hornbuckle previously told investors a two or three of MGM's Las Vegas properties would reopen initially, naming New York-New York and Bellagio as likely candidates. The company says an exact timeline for reopening is yet to be determined.
