MGM continues to cut jobs to save money
The company is about 50% into its 2019 staff reduction goal
MGM has already begun chopping its workforce over the past month and has once again swung the ax. In an attempt to cut its staff by about 2,100 next year, it wants to eliminate 1,000 in 2019 and there’s little doubt it will succeed. It has already gotten rid of a total of 557 workers.
254 employees were relieved of their duties in April, and another 222 were just given their pink slip. MGM CEO Jim Murren said in a statement, “We have taken strides to ensure our impacted colleagues were offered other options if those existed and we have provided a non-working notice period where health benefits will continue and severance to try and ease a life-changing transition. I stand behind the decisions we have made and believe them necessary to assure our future, but I deeply regret the impacts they have on individuals and their families.”
The company had decided it needed to spend billions of dollars over the past couple of years and employees are now paying the price. It spent $960 million on the MGM Springfield, $550 million to renovate a Monte Carlo casino, $1.4 billion in MGM National Harbor, $3.4 billion on MGM Cotai, $850 million on Empire City and $900 million when it purchased a 50% stake of Borgata Atlantic City.
While the employees are certainly feeling the pinch, Murren isn’t. He earned $12.8 million in compensation last year and is certainly not going to be willing to cut back in order to help the company reach its financial goals. That salary is more than 450 times greater than the average salary of MGM’s workforce.