MGM Springfield lays off 1,000 employees
Number of workers cut in half, revenue down significantly
MGM SPRINGFIELD is laying off 1,000 already furloughed employees as part of nationwide cuts by its parent company that resulted in 18,000 total layoffs on Friday.
The workers have been on a temporary furlough that started in March, when the coronavirus pandemic forced casinos to shut down.
“While we have safely resumed operations at many of our properties and have returned tens of thousands of our colleagues to work, our industry – and country – continues to be impacted by the pandemic, and we have not returned to full operating capacity,” wrote MGM CEO and President Bill Hornbuckle in a letter to employees.
The casino was shuttered from March until July, when it reopened with 700 hundred employees. Another 100 workers have been added since then.
The hotel for the casino remains closed, according to the company.
“Due to the mandated capacity restrictions and business demand, many of our amenities and venues remain closed for the time being. With these positions currently unavailable, it has not been possible to bring back all of our team members,” said Chris Kelley, president and chief operating officer at MGM Springfield in a letter to workers.
State rules intended to stem the spread of the virus have limited events and game availability that are usually big money makers.
The employees have been furloughed without pay since April. Friday is the legal deadline imposed by the federal WARN Act that requires furloughed employees to be updated on their positions or be formally laid off from their jobs.
A spokeswoman for the company said that the affected workers will still be on a call list in the event the economic situation improves. If they’re hired back before the end of the year, they can retain seniority and reclaim their former positions. Their health insurance benefits have been extended through Sept. 30.The resort and casino are currently operating at about one-third of normal capacity, as tourism and gambling industries continue to be hit hard by the virus.
The gross gambling receipts for the casino were $10.7 million from July 10, when the casino reopened, to July 31. That figure was over $21 million in February 2020, before Gov. Charlie Baker began closing businesses.