American casino operator MGM Resorts International has reportedly initiated the final stage of the MGM 2020 cost-saving initiative it first unveiled in January by announcing the elimination of a further 1,070 jobs.
Las Vegas looms large:
According to a Thursday report from the Las Vegas Review-Journal newspaper, the firm detailed that 881 of these positions are being abolished at its properties along the Las Vegas Strip, which include the giant Mandalay Bay Resort and Casino alongside the even larger Bellagio Las Vegas, and will involve management and mid-management roles.
Ongoing benefits:
Las Vegas-headquartered MGM Resorts International reportedly explained that most of those being made redundant are set to receive at least two weeks of pay and health care benefits as well as several months of job placement and counseling services. The Nevada firm purportedly specified that the affected employees will be eligible to get a full two weeks of wages for every year of service although this is being capped at 26 weeks for salaried employees and 13 weeks for those on more basic hourly rates.
Improvement initiative:
The Las Vegas Review-Journal reported that the job losses were announced via a letter (pdf) from Jim Murren, Chairman and Chief Executive Officer for MGM Resorts International, as part of the company’s MGM 2020 initiative to improve annual cash flows by up to $200 million by the end of next year.
Murren’s letter reportedly read…
“I want to assure you the decisions of the last several months were made deliberately, carefully and with gravity. Having done this foundational work, we will be stronger and better prepared for continued success and industry leadership in 2020 and beyond.”
Continuing cuts:
The Las Vegas Review-Journal reported that MGM Resorts International has come under investor pressure to improve earnings so as to boost share price and last month eliminated some 254 management positions.
Reportedly read the letter from Murren…
“I stand behind the decisions we have made and believe them necessary to assure our future but I deeply regret the impacts they have on individuals and their families.”