“Vast majority” of MGM layoffs are in Las Vegas

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MGM Chairman and CEO Jim Murren talking about the company's job training and education efforts at an MGM Resorts Public Policy Institute forum at Bellagio Tuesday, April 23. (MGM Twitter)
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MGM Chairman and CEO Jim Murren talking about the company’s job training and education efforts at an MGM Resorts Public Policy Institute forum at Bellagio Tuesday, April 23. (MGM Twitter)

Just days after touting his company’s workforce development efforts, MGM International Resorts Chairman and CEO Jim Murren announced 254 employees would be informed Thursday they’ll lose their jobs, “and in a few weeks, we will have one more round of position eliminations,” he wrote in a letter to all employees.

“These impacts are being felt across the Company as this is a comprehensive change that is meant to be transformative,” Murren wrote.

But the job cuts will be especially transformative in Las Vegas.

“The vast majority are in Las Vegas,” says MGM Public Relations executive Debra DeShong.

MGM is Nevada’s largest private employer, with 11 resorts in Las Vegas, more than 53,000 employees in the state and 72,000 worldwide.

Some management level employees have been offered early retirement packages amounting to one month’s pay for each year of service, sources tell the Current.  But is that standard for all employees offered early retirement?

“We’re not going to discuss the details on these separations and in many cases, each instance is different,” DeShong said by email.  “So to answer your question, no that’s not right but I am not going into the details.”

MGM 2020, as the internal job shuffle and layoffs are referred to by the company, is a cost-cutting measure designed to eliminate three percent of the workforce and boost shareholder value as it sets its sights on winning a lucrative casino bid in Osaka.

“We need to create a company that is streamlined, nimble and empowers leaders. If we want to unleash innovation and support dynamic new ideas, we need a new way of operating,” Murren wrote to employees. “From the beginning we have been transparent that our strategy would include reskilling, reorganization and – regrettably – a reduction in our workforce. These are difficult decisions, ones no leader wants to make. But they set the stage for future growth and greater job creation in the long run, a responsibility I take seriously as the leader of this Company.”

Dana Gentry
Reporter | Dana Gentry is a native Las Vegan and award-winning investigative journalist. She is a graduate of Bishop Gorman High School and holds a Bachelor's degree in Communications from the University of Nevada, Las Vegas. Gentry began her career in broadcasting as an intern at Channel 8, KLAS-TV. She later became a reporter at Channel 8, working with Las Vegas TV news legends Bob Stoldal and the late Ned Day. Gentry left her reporting job in 1985 to focus on motherhood. She returned to TV news in 2001 to launch "Face to Face with Jon Ralston" and the weekly business programs In Business Las Vegas and Vegas Inc, which she co-anchored with Jeff Gillan. Dana is the mother of four adult children, three cats, three dogs and a cockatoo.

5 COMMENTS

  1. I wonder how this will affect Japan. I don’t see other operators bidding for the licence (Sands and Crown Melco) laying off 1100 employees in ONE DAY. Bloodbath cuts to the bone are bad for morale and high drama. I don’t see Japan liking drama.
    I also to see Murren stepping up to give up any of his 15 million a year.

  2. MGM resorts has no concerns for employees. They’re only concern is the bottom line. Quarterly and yearly numbers. Front desk being replaced by electronics. Cashiers being replaced by electronic. Bartenders being replaced by electronic. Pit bosses given severance pay, or demotion. Please boycott automation everywhere. Save a persons job by waiting for a human to serve you. Spend your hard earned money at local casinos. Paying to park?

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