Las Vegas Strip companies have spent the week responding to a decline in business as visitors stay away and cancel outings because of coronavirus concerns.
Shows have been postponed, sports books and poker rooms are temporarily closing, valet operations will be limited and some companies are cutting back on employees.
MGM Resorts International sent a letter to employees Friday informing them of layoffs and furloughs, although it didn’t indicate how many employees or which properties.
“Business demand has decreased significantly,” MGM President Bill Hornbuckle said in the six-paragraph letter (see below). “As the nation grapples with the effort to contain the coronavirus, the travel industry has been challenged, and our company is no different.”
Hornbuckle also said “several of our employees have tested presumed positive for coronavirus, and we will expect more in the coming days.” He didn’t say if those workers were part of the 16 cases in Clark County, or at one of the group’s other properties, such as MGM Northfield Park in Ohio, which is shuttering on an interim basis.
“Please keep them and their families in your thoughts and prayers,” Hornbuckle said in the letter. “Their co-workers and those individuals who have had close contact have been notified.”
An MGM spokesman said Friday he couldn’t be specific about properties and departments affected by the layoffs. An employee at New York-New York told the Sun on Friday that valet service will shut down beginning at 2 p.m. Sunday — a sign outside the property Friday night said the same. The employee also said workers in housekeeping, valet and the front desk would be reduced.
The MGM news is the latest in what promises to be a lean period for Las Vegas resorts amid the global coronavirus pandemic. The Southern Nevada Health District on Friday confirmed eight new coronavirus cases, bringing the total in Clark County to 16, though that number is expected to grow.
MGM also plans, according to the letter, to begin the closure of about 150 food and beverage outlets on Monday. More restaurants and bars are expected to follow on a “rolling basis,” the letter said.
Earlier Friday, the MGM announced spas and salons will also close on Monday.
MGM indicated in the letter that it will continue to honor employee health benefits — those who have benefits already — through June.
“MGM Resorts will weather this storm,” Hornbuckle said. “In the not-so-distant future, I know we will be ready to welcome the hundreds of thousands of guests who come to our facilities every day to be served by the most amazing employees in the industry.”
MGM isn’t the lone resort operator scaling back.
Wynn Resorts on Friday announced its sports books and poker room at Wynn Las Vegas and Encore will close Sunday, the result of the sports world being put on hold because of the outbreak. In a typical year, next week is the busiest time for Las Vegas books because of the millions wagered on the popular NCAA Tournament.
Numerous shows and residency dates have also been canceled throughout town, everything the Smith Center in downtown canceling shows through the end of the month, to Disney’s "Beauty and the Beast" at Henderson Pavilion. Here’s a complete listing of cancellations.