MGM Resorts International, one of the largest employers in Nevada and a leading global casino company, will begin layoffs and furloughs next week after a significant slowdown in business amid coronavirus concerns.
Employees were notified Friday in a company-wide letter from MGM President and COO Bill Hornbuckle.
“As the nation grapples with the effort to contain the coronavirus, the travel industry has been challenged, and our company is no different,” Hornbuckle wrote. “Business demand has decreased significantly. In response, we will temporarily close MGM Northfield Park tonight and have suspended operations of all nightclubs and day clubs. Our spas and salons will suspend operations as of Monday.”
The company also plans to close about 150 food and beverage outlets, the letter said.
“We are working diligently to minimize the impact on our employees through furloughs and layoffs which will begin next week,” Hornbuckle wrote. “These decisions are never made lightly, and we deeply regret the hardship it will place on these individuals and their families.”
Laid off employees will maintain benefits through June 30, the letter said.
According to the MGM Resorts website, the company has 30 hotel and gaming destinations around the globe, and employs 83,000 people.
Hornbuckle said “several” of those employees have tested positive for coronavirus, although he did not say at which locations.
MGM’s announcement signals troubled times ahead for Las Vegas. The city’s conference and convention business has suffered a string of cancellations as a result of the COVID-19 crisis, and that means lost revenue across the city.
You can read Hornbuckle’s full letter here.