Some of the 60,000 MGM Resorts International employees furloughed during the coronavirus pandemic may not be recalled, at least not anytime soon, the company’s CEO said.
In a letter to employees Tuesday, acting company CEO Bill Hornbuckle said a forecast for continued weak tourism portends some furloughed workers might not be back on the job this year.
“When we first furloughed our employees, we hoped the spread of the virus could be contained or that an effective treatment would emerge quickly,” Hornbuckle said in the letter.
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“We hoped that a significant portion of our operations would bounce back by the summer. That outlook has continued to evolve as COVID-19 cases spread throughout the world,” he said. “Based on the current situation, we now believe that some of our colleagues may not return to work this year.”
He said MGM would welcome furloughed employees back “with open arms” once the industry recovers, but he acknowledged they “may find permanent employment elsewhere” before that happens.
Hornbuckle said MGM officials expect travel demand to be “significantly” decreased for the rest of the year and possibly into the early 2021.
Hornbuckle called the COVID-19 crisis “the most challenging period ever faced by our company and industry.”
Gov. Steve Sisolak in mid-March ordered casinos and other nonessential businesses closed to curb the spread of the virus.
Nevada is in the early stages of a phased reopening of some businesses, but casinos will remain shuttered until at least May 15. When they do open, it will be with a cap on the number of guests and other restrictions, such as no nightclubs.
MGM has said it only plans to initially open a couple of its 10 Strip resorts.
Hornbuckle said furloughed workers would receive an extension on health benefits through Aug. 31. Previously, MGM had promised to provide benefits through June.