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The continued spread of the coronavirus means a large segment of MGM Resorts International’s Entertainment & Sports Division will be out of jobs, according to a company letter.
MGM plans to cancel the remainder of its August performances after analyzing health trends, according to a letter Entertainment & Sports President George Kliavkoff sent to employees on Monday. The employees within that division likely won’t be called back by the end of August, when MGM announced impending layoffs.
“As you were previously informed, MGM employees who are not recalled on or before August 31, 2020 will be separated from the company on that date, and it now looks like that will unfortunately include the large majority of employees working in our division,” Kliavkoff said.
MGM Resorts International CEO Bill Hornbuckle told employees in a letter they will remain furloughed until Aug. 31. Some would be brought back. Those who weren’t would be terminated.
At least a fraction of those layoffs will affect Springfield workers. The company told state labor officials in May it plans to lay off close to 1,900 employees at MGM Springfield by the end of August.
MGM Springfield had just over 2,000 employees at the start of the year, two-thirds of the number of jobs the company promised to deliver as it bid for a gaming license.
In Monday’s letter, Kliavkoff said all furloughed employees enrolled in the company’s health plan will continue to receive benefits through Aug. 31. They also will continue processing grants for employee expenses, such as rent, mortgage payments, groceries and utilities through the Employee Emergency Grant Fund. Those who lose their jobs at the end of August are still eligible to receive grants under the fund through Nov. 29, according to the letter.
“We remain committed to reopening all our entertainment venues when it is safe to do so and our plan is to call back as many of our division’s employees as possible as quickly as we can,” the letter states.
MGM Springfield reopened in early July as the state allowed casinos to resume operations under the third phase of reopening during the coronavirus. MGM Springfield returned with a third of its workforce capacity, only bringing back all of its maintenance staff.
Encore Boston Harbor, the resort casino on the other side of the state, announced furloughs for as many as 3,000 employees in June.
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