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MGM Resorts lays off 557 more employees in cost-cutting move - Las Vegas Review-Journal

MGM Resorts lays off 557 more employees in cost-cutting move - Las Vegas Review-Journal


MGM Resorts lays off 557 more employees in cost-cutting move - Las Vegas Review-Journal

Posted: 30 May 2019 08:44 AM PDT

The final wave of cuts eliminating a total 1,070 jobs at MGM Resorts International properties began Thursday.

MGM Chairman and CEO Jim Murren distributed a letter to employees saying 557 employees would learn their positions have been eliminated as part of the company's MGM 2020 cost-cutting restructuring.

Of the 1,070 layoffs, 881 are Las Vegas employees, mostly in management or mid-management positions.

"I want to assure you the decisions of the last several months were made deliberately, carefully and with gravity," Murren said in his letter to employees. "Having done this foundational work, we will be stronger and better prepared for continued success and industry leadership in 2020 and beyond."

The company announced MGM 2020 in January and said the plan would improve cash flow by $200 million annually by the end of 2020 and an additional $100 million by the end of 2021.

A spokeswoman for MGM said most of those laid off in the most recent round of cuts will get at least two weeks of non-working severance pay, two weeks of full health care, and several months of career counseling and job-placement services.

Some of those laid off will receive additional benefits based on time of service. Affected employees will be receiving two weeks of non-working notice period during which health care and other benefits remain intact. Additionally, they will get two weeks of severance pay for every year of service, up to 26 weeks for salaried and 13 weeks for hourly positions.

"I stand behind the decisions we have made and believe them necessary to assure our future, but I deeply regret the impacts they have on individuals and their families," Murren said in his letter to employees.

MGM 2020, a company-wide business optimization initiative aimed at leveraging a more centralized organization to maximize profitability, is part of the company's digital transformation to drive revenue growth. Ideas hatched four years ago and expanded upon at MGM's Investor Day presentation in 2018 build on MGM's 2015 profit growth plan.

When MGM 2020 was announced, Murren said cost savings and reinvestment would help with the continued ramp-up of Park MGM, NoMad Las Vegas, MGM Cotai in Macau and MGM Springfield in western Massachusetts, and enable the company to enter markets in New York and Ohio.

In addition to increasing margins and maximizing profitability, the company indicated it would continue to establish new relationships with professional sports leagues and teams to bolster its efforts to expand sports wagering nationwide and to pursue development of an integrated resort in Japan. MGM is focused on establishing a foothold in Osaka, where Japanese officials are hopeful of opening a resort by 2025 when the city hosts the World Expo.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.

MGM Letter by Las Vegas Review-Journal on Scribd

MGM says Las Vegas shooting settlement could cost up to $800M - Fox Business

Posted: 17 May 2019 12:00 AM PDT

Fox Business

MGM Resorts is facing a hefty financial sum in response to a slew of liability lawsuits filed in connection to the October 2017 Las Vegas mass shooting.

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The casino giant may pay up to $800 million to settle the suits, the group told the Securities and Exchange Commission in a quarterly report.

The company said it's "reasonably possible" an agreement will be reached by May 2020, MGM told the SEC.

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MGM Resorts also said it has $751 million in insurance to pay toward a settlement. However, a lawyer handling mediation talks for plaintiffs called it premature for the corporate owner of Mandalay Bay resort to report a possible settlement range between $735 million and $800 million.

"We're not even close to resolving all the terms and issues before we have a settlement," attorney Robert Eglet said.

Eglet reportedly represents more than 4,000 claimants. That includes people who have sued outside of Nevada as well as those who have not even formally filed yet.

"It's true that a settlement is possible," Eglet said. "But I will tell you it's not probable. Nothing is signed. We have a long way to go before we have an agreement."

But MGM company spokeswoman Debra DeShong said progress has been made following multiple mediation sessions over several months.

The goal is "to resolve these matters so that all impacted can move forward in their healing process," she said.

The casino has previously fought back against liability claims connected to the mass shooting — the deadliest in modern U.S. history.

In July 2018, MGM Resorts International filed lawsuits against the more than 1,000 victims of the attack. In the suits, which only asked for claims against MGM-related parties to be dismissed, the casino argued that "plaintiffs have no liability of any kind to defendants."

Plaintiffs are currently seeking compensation for a range of physical and psychological harm after a shooter rained gunfire from a Mandalay Bay suite into an open-air concert crowd, killing 58 people and injuring more than 800.

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They accuse MGM Resorts, which owns the high-rise hotel and owned the concert venue across Las Vegas Boulevard, of failing to adequately protect the 22,000 people attending the Route 91 Harvest Festival.

They point to findings that the shooter, Stephen Paddock, spent several days amassing an arsenal of assault-style weapons and ammunition in the two-room suite.

Fox News' Greg Norman and The Associated Press contributed to this report

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