MGM massively cuts staff at casinos and hotels
MGM Resorts International fired senior executives this Friday, including four presidents, in a sweeping move
Sources with knowledge of the company's actions note that Randy Morton (Bellagio), Cindy Kaiser Murphy (New York-New York), Cliff Atkinson (Luxor) and Eric Fitzgerald (Excalibur) left their posts. . It is also known that the number of management positions has been cut across the company.
Brian Ahern, MGM spokesman, confirms that "management has changed", but declines to comment.
The current CEO, Bill Hornbuckle, has revealed that the Bellagio and New York-New York will be the first casino hotels the company plans to open immediately after the end of the quarantine associated with the coronavirus pandemic. The exact reopening schedule is not yet known.
This is far from the first staff cuts at MGM since US casinos closed their doors to players. The company has laid off or placed on furlough about 63,000 employees over the past few weeks in an attempt to maintain the liquidity of the business.
According to MGM, about $200 million in cash is burned every month while the property is closed.
Модель нового руководящего состава, представленная Ахерном, показывает, что каждый из оставшихся руководителей MGM, будет контролировать два или три заведения на Лас-Вегас-Стрип.
Josh Swissman, founding partner of The Strategy Organization, a gaming and hospitality consulting firm based in Las Vegas, said that MGM's next step would be to reduce the number of regional executives. Swissman believes that such a decision is already being considered, citing a quote from MGM's press corps that says "more announcements are pending."
, firstly because of a phased plan to reopen establishments, and secondly because of ... lower demand than many expect,” said the founder of the consulting company.
“While the reduction jobs will help keep cash reserves,” added Swissman, “these funds will help the company operate more efficiently in the long term.”
“It will be interesting to see how the volume of business activity increases,” says Josh Swissman, “and this is going to be a really big test given the change in management."
The same day, Station Casinos, a Las Vegas gaming real estate operator, announced that it was going to lay off a "significant" number of employees at various levels.
"All of this continues to demonstrate the pressure that the gaming and hospitality industry is under at a time of unprecedented and uncertain economic times with no timetables for planning and decision making", said Brendan Bassman, partner at Global Market Advisors, a gaming consulting company.
Nevada casinos were closed on March 18th. Gov. Steve Sisolak extended quarantine measures for non-essential businesses across the state through May 18. That's when the opening is scheduled to begin.
At the same time, the governor of Nevada noted that "casinos are not among the businesses that will reopen in the first place."
"The longer this goes on," says Brendan Bassman, "the more difficult will survive each of these companies in the long run.” “It seems to me that now every casino is sitting and evaluating how they can reduce daily expenses ... They are forced to constantly make decisions, knowing that conditions change day by day.”
Based on materials from the Las Vegas Review-Journal