Casino Layoffs Continue With 1,100 MGM Grand Detroit Employees
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More than a thousand job losses are expected in Detroit as a result of a significant company-wide layoff initiated by MGM Resorts International.
On Monday, MGM Grand Detroit officially announced to Playinmichigan that they will be permanently laying off 1,100 furloughed workers.
Due to the business disruptions caused by COVID-19, the company has initiated a restructuring plan that will result in the loss of 18,000 jobs across the country.
Approximately 3,000 employees will be permanently laid off due to the pandemic, in addition to the workforce reductions at Detroit’s other two commercial casinos.
Just five days after the regulated sports betting opened for the downtown gambling halls, the pandemic forced the closure of Detroit’s casinos on March 16.
Only some MGM casino employees called back
After being closed for over four months due to the pandemic, MGM Grand Detroit reopened its doors on August 7th.
Currently, the Detroit casinos are subject to certain restrictions which entail limited capacity of up to 15% and a prohibition on indoor smoking.
MGM Grand Detroit sent a Worker Adjustment and Retraining Notification notice to the state of Michigan in May. The notice stated that 2,632 employees would experience temporary layoffs during the closure of the casino.
As the industry landscape evolves, the company remains committed to providing health care benefits to laid-off employees until Sept. 30. Additionally, these employees can be reinstated without facing any penalties as circumstances change.
Furthermore, employees who are summoned back by December 31st will maintain their seniority and promptly resume receiving their benefits.
The Las Vegas Sun reported that until November 29, the MGM Employee Emergency Grand Fund would provide support to the company’s laid-off workers. Since the beginning of the pandemic, over $12 million in emergency aid has been distributed to affected MGM employees, as stated by the company.
Tax revenue takes big hit from casino closures
Furthermore, the closures of MGM, Greektown Casino-Hotel, and MotorCity Casino significantly affected public budgets.
The year-to-date revenue for the casinos was 65% lower as of July.
In 2020, Michigan experienced a decrease of $45 million in total revenue compared to the previous year. Additionally, the city of Detroit saw a significant downturn of $66.1 million in casino tax revenue.
The closures also resulted in significant losses for corporate owners, including MGM, Ilitch Holdings of MotorCity, and Penn National Gaming of Greektown.
The pandemic has caused job losses not only for MGM, but also for other casinos in Detroit.
MotorCity, Greektown also had job losses
MotorCity Casino made its reopening two days prior to MGM, however, it reinstated a reduced workforce.
MotorCity’s General Manager, Bruce Dall, stated that following the reopening of the Ilitch Holdings casino on August 5th, they were able to rehire 50% of the 2,554 employees who were laid off as stated in the July 22 WARN notice.
On Monday, the health insurance benefits of the displaced workers were scheduled to be taken away.
Greektown made an announcement in June regarding the layoff of 621 employees, commencing on September 15th.
