Contrary to widespread news reports, the 254 employees who lost their jobs with MGM Resorts International Thursday were not confined to management, but rather extended to entry-level workers.
“It was a bloodbath,” says one terminated employee who asked not to be identified. “I waited six hours to find out I’d been fired. They walked around pointing people out. Everyone was crying. Some of those laid off didn’t even bother cleaning out their desks.”
“I can’t speak for the whole company but in my department of 42 people there are 15 left,” the former employee said. “One vice-president accepted voluntary severance. Three directors and five managers were terminated. The rest were all communications and events specialists and video team specialists.”
“My team was the first to go,” said a former employee from the Social Customer Care Team who also asked not to be identified. “My entire team of four specialists was let go. Our entire adjacent team of four Social Resolution specialists and managers was let go. I know of two social media strategists from the Engagement team who were let go. I also know of at least three administrative people who were let go, including a front desk worker.”
The company’s Learning and Development staff, which trains employees, is down to two workers, according to the former employee.
The former employee says all of those terminated Thursday received a minimum severance of one month’s pay.
The company intends to cut three percent of its workforce, with the “vast majority” of the layoffs in Las Vegas as part of MGM 2020, a cost-cutting initiative designed to increase the company’s financial position as it ventures into Japan and a potential $15.9 billion market.
In November, chairman and CEO Jim Murren told Nikkei Asian Review that MGM intends to invest “billions of dollars” in a Japanese resort.
The company did not respond to a request for comment Friday.
MGM is scheduled to report quarterly earnings on Monday.