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.”