MGM Resorts announces budget cuts and layoffs for 2020
2019 is only days old but workers at MGM Resorts are already looking forward to 2020 with a sense of dread and unease. That’s because the gaming industry giant is preparing to boost profits by as much as $300 million and that boost is going to be funded by as many as 2,000 layoffs.
MGM Resorts made the announcement yesterday in a press release touting its “MGM 2020” plan as a means of bringing new profitability to the distinguished gaming company.
Not surprisingly, the press release buried the news that about 3 percent of the company’s 71,000 employees would be losing their jobs along the way to that $300 million goal. They do, however, mention that half of their savings goals for 2020 will be met by, “labor savings.”
In the press release, Jim Murren, Chairman and CEO of MGM Resorts International described MGM 2020 as follows, “Today, we are taking the next step in our evolution as an organization. We are building on the strong foundation that we have solidified over the past few years, to deepen our efficiencies and achieve sustained growth and margin enhancement. MGM 2020 is intended to further transform the way we operate and leverage the most effective operational architecture for our company.”
Other reports weren’t quite as effusive and suggested that most of the layoffs would be coming from the management side of the MGM Resorts operation, though a smaller number of union jobs will be on the chopping block, too.
Murren went on to add that MGM Resorts is currently turning a profit.