MGM Resorts International has announced that it’s Borgata Hotel Casino in Atlantic City is laying off 2,295 employees. The COVID-19 pandemic is the main reason why the layoffs are taking place, as the industry has been unable to increase capacity as well as offer main amenities.
A letter separation was issued on Friday by MGM President and CEO Bill Hornbuckle that said the layoffs are effective Monday, August 31. MGM has now separated from 18,000 employees in total since the coronavirus pandemic began. The Borgata will maintain a workforce of 3,100 people.
If conditions within the industry improve, the Borgata would like to hire the same employees back to their original positions. According to Hornbuckle, the hope is that as restrictions are lifted on indoor dining and more amenities become available, employees will be able to return.
Casinos first closed on March 16 and were not allowed to get back to work until July 2. They remain open at 25% capacity.
Late Start for Borgata
The Borgata Casino had a late start in getting back to work in Atlantic City. While most casinos reopened during the Fourth of July weekend, the Borgata waited until the end of the month. They were not happy with the decision by Governor Murphy to ban indoor dining and beverage service. The casino chose to reevaluate their options and open at a later date when they could offer their guests the type of service they expect.
As the casino is still unable to offer certain amenities and the capacity for players is still low, the casino’s parent company had to make the difficult decision to let team members go. In the letter, Hornbuckle stated that he understands the impact that the decision will have on employees and their families and it pains him to be delivering such news.