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MGM Resorts report closures, layoffs; employees test presumptive positive for coronavirus

Business demand down significantly amid coronavirus concerns
Posted at 10:56 AM, Mar 14, 2020
and last updated 2020-03-14 13:57:57-04

A major hospitality and entertainment company in Las Vegas has announced several closures and layoffs, as business demand significantly drops amid coronavirus concerns.

An MGM Resorts spokesperson shared a company-wide letter with 13 Action News Friday evening that cites several employees have tested presumptive positive for the new coronavirus, and that the company expects there to be more reports in the coming days.

"Their co-workers and those individuals who have had prolonged close contact have been notified. We are working with the health district to address these cases as quickly as we can," MGM Resorts President and COO Bill Hornbuckle wrote in the letter.

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Friday evening's notification was released after the company had confirmed earlier that a Luxor Las Vegas employee had tested positive for the coronavirus known as COVID-19.

Hornbuckle's letter said business demand has decreased significantly. In response, the company will temporarily suspend operations of all nightclubs and day clubs, along with spas and salons suspending operations on Monday.

And approximately 150 food and beverage outlets will also close, with more closing on a rolling basis.

RELATED: MGM Resorts temporarily closes day and nightclubs

The letter also continues to say that employees will be given furloughs and layoffs, which are set to begin the week of March 16, with some areas of business already having layoffs in areas most immediately impacted by the slowdown.

"These decisions are never made lightly, and we deeply regret the hardship it will place on these individuals and their families," Hornbuckle wrote in the letter.

Flexible Time Off (FTO) for eligible employees on furlough will continue to be paid for two weeks, and hourly employees can use all available Paid Time Off (PTO) in their bank, according to Hornbuckle.

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Also, the company said it has decided to maintain existing employees' benefits, for individuals who are on a health plan and impacted by the layoffs or furloughs through June 30.

Corporate employees whose teams can work from home will be doing so next week, according to MGM Resorts, and if employees had further questions, they could contact the HR Hotline at 702-693-7221 or 888-719-7171.

"There is much about this unique crisis that is unknown. But one thing that I do know is that MGM Resorts will weather this storm. We are resilient, and we will lean on one another to get us through," Hornbuckle wrote.

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