Mass layoffs are hitting workers at one America’s biggest casino companies. MGM International is laying off 18,000 furloughed workers in the U.S. amid an unprecedented slowdown in the gambling industry. The job cuts begin Monday and will account for roughly a quarter of the companies pre-pandemic workforce.
With global travel nearly shut down and domestic travel still minimal…the company has suffered extraordinary losses. Gambling revenue, for example, on the famed Las Vegas Strip, where casinos–including MGM’s properties–rely on a steady stream of tourists, plunged 39% in July compared to the previous year.
The MGM news comes on the heels of American Airlines announcing it will cut 19,000 workers unless a deal is reached to provide an additional $25 billion in government aide to the airline industry before October 1. In addition, Delta announced it would furlough 1,941 pilots.
The tourism and travel industry is one of many sectors in our economy suffering from the on-set of the coronavirus pandemic. Coca-cola is announcing layoffs of 4,000 workers, while oil-field services provider Schlumberger already said it is slashing 21,000 jobs amid the downturn in oil prices.
It is clear that the coming months will be increasingly painful for American business and American workers…nonetheless, there is still much hope that Americans will increasingly return to normal once a vaccine is made available. Indeed, MGM said it hopes to rehire its 18,000 workers, once there are signs of a turnaround in its business.