May 01– May 1–MGM Resorts officials announced another wave of cost-cutting measures that include hundreds of layoffs.
Chief Financial Officer Corey Sanders said this week the company will cut about 1,000 jobs this month. This includes the 254 layoffs announced last week and several dozen executives taking early retirement.
MGM officials did not share specifics about which markets or positions will be impacted by layoffs.
MGM corporate-wide layoffs include jobs at MGM Springfield
MGM Resorts International, parent of the new MGM Springfield resort casino, announced in January its plans to cut $100 million in U.S. payroll over the next two years.
The cuts are part of the company's MGM 2020 Plan, a restructuring plan announced in January which seeks to maximize profitability at the company by consolidating. MGM plans to increase its cash flow by $200 million by the end of 2020 and an additional $100 million the following year.
The company reported revenue up 12.6 percent in the year's first quarter compared to 2018's and up 23 percent at MGM's regional properties outside of Las Vegas, namely thanks to the opening of MGM Springfield and the company's acquisition of Empire City Casino in Yonkers, New York.
MGM Springfield earned 9.38 million, according to quarterly profit results.
Company executives say the New England property had a slower than predicted start but expect a "ramp-up" in business as temperatures rise.
"Obviously, it's seasonal. Northeast Corridor, particularly, spring will bring more business. It's happened throughout Connecticut and throughout the region. We anticipate that," MGM Resorts President Bill Hornbuckle said during a call with stock analysts this week. "We're in full leverage mode on entertainment, Cher, Aerosmith, Steve Martin all come to Springfield in the near future."
MGM Resorts International Chairman and CEO James Murren highlighted that MGM Springfield had a strong March with gaming and entertainment offerings expected to draw more to the city in coming months.
"We expect to see at Springfield a ramp-up along the lines from a trajectory that we saw at National Harbor," Murren said, referencing the company's Maryland property opened in late 2016.
MGM tells investors: Springfield 'continues to ramp;' entertainment expected to draw more visitors
The casino hopes entertainment will draw more guests.
