MGM Resorts to lay off 18,000 furloughed US workers: WSJ

NEW YORK (REUTERS) – Casino operator MGM Resorts International plans to lay off 18,000 furloughed workers in the United States as widespread travel restrictions due to the coronavirus crisis dented its operations, the Wall Street Journal reported on Friday (Aug 28).

The company, which had about 52,000 full-time and 18,000 part-time employees in the United States, as of Dec 31, will start laying off workers on Monday (Aug 31), according to an MGM letter to its employees seen by Reuters.

However, the letter does not confirm the number of job cuts.

“Federal law requires companies to provide a date of separation for furloughed employees who are not recalled within six months. Regrettably, August 31, marks (that) date,” Chief Executive Officer Bill Hornbuckle said in the letter.

A number of companies are announcing jobs cuts as the US economy suffered its sharpest contraction in at least 73 years in the second quarter due to disruptions induced by the pandemic, with corporate profits sinking deeper.

Hornbuckle said that employees who will be laid off on Aug 31 will remain in the company’s recall list, with those returning to work by end of 2021 retaining their seniority and benefits.

Earlier in the day, Coca-Cola said it would cut thousands of jobs as sales had slumped, while United Airlines confirmed the carrier was preparing for the biggest pilot furloughs and will need to remove 2,850 pilots this year, or about 21 per cent of the total.

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