While stocks soar to recorder highs by the day, no prosperity is “trickling down” to the leisure and hospitality industry – the sector most hit by the covid shutdowns – and things just went from bad to worse for the US gambling mecca where as CNBC and the WSJ reported, MGM Resorts International intends to send separation letters to 18,000 previously furloughed employees throughout the US. The job cuts start next week, and represent about a quarter of all the company’s pre-pandemic US workforce of 68,000.
“Nothing pains me more than delivering news like this,” MGM’s CEO Bill Hornbuckle wrote in a tear-stained note to accompany the thousands of pinks lips. “The heart of this company is our employees and the world-class service you provide. Please know that your leadership team is working around the clock to find ways to grow our business and welcome back more of our colleagues,” Hornbuckle said.
“While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent.” Hornbuckle added “The fundamentals of our industry, our company and our communities will not change. Concerts, sports and awe-inspiring entertainment remain on our horizon.”
The company promised to extend health benefits for furloughed employees until September 30.
The “good news” is that MGM said it still plans to rehire those workers as business demand returns, and will maintain a recall list of former employees, and workers who return before the end of 2021 will retain seniority and immediately resume benefits, the company said. Health benefits for cut workers are being extended through Sept. 30. – READ MORE
Listen to the insightful Thomas Paine Podcast Below --