Casino Layoffs Continue With 1,100 MGM Grand Detroit Employees

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MGM Resorts International’s large-scale layoffs will lead to over a thousand job cuts in Detroit.

On Monday, MGM Grand Detroit officially notified Playinmichigan that they will be terminating the employment of 1,100 furloughed workers, marking it as a permanent layoff.

Due to the business disruptions caused by COVID-19, the layoffs are inevitable and form an essential component of a nationwide restructuring plan, resulting in a total workforce reduction of 18,000 employees.

Approximately 3,000 workers will face permanent layoffs due to the pandemic, in addition to the workforce reductions at Detroit’s two other commercial casinos.

Just five days after the downtown gambling halls opened for regulated sports betting, the pandemic forced the closure of Detroit’s casinos on March 16.

Only some MGM casino employees called back

After over four months of closure due to the pandemic, MGM Grand Detroit reopened on August 7th.

Currently, the Detroit casinos are operating under certain limitations, such as a 15% capacity restriction and a ban on indoor smoking.

MGM Grand Detroit notified the state of Michigan in May that 2,632 workers would undergo temporary layoffs during the closure of the casino.

As the industry landscape evolves, the company will sustain health care benefits for laid-off employees until Sept. 30. These employees will have the opportunity to be rehired without facing any penalties.

Furthermore, employees who are recalled by December 31st will maintain their seniority and promptly regain their benefits.

The MGM Employee Emergency Grand Fund will continue to provide support to laid-off workers until November 29, as reported by the Las Vegas Sun. Since the beginning of the pandemic, over $12 million in emergency assistance has been disbursed to impacted MGM employees, as stated by the company.

Tax revenue takes big hit from casino closures

Furthermore, the closures of MGM, Greektown Casino-Hotel, and MotorCity Casino had a significant effect on public budgets.

The year-to-date revenue for the casinos experienced a 65% decline through July.

In comparison to 2019, Michigan experienced a decrease of $45 million in funding, while the city of Detroit specifically witnessed a downturn of $66.1 million in casino tax revenue.

The closures also resulted in significant losses for corporate owners like MGM, Ilitch Holdings of MotorCity, and Penn National Gaming of Greektown.

The pandemic has caused job losses not only for MGM but also for other casinos in Detroit.

MotorCity, Greektown also had job losses

MotorCity Casino resumed operations just two days prior to MGM, yet with a reduced workforce.

MotorCity issued a WARN notice on July 22, announcing the layoff of 2,554 employees. However, Bruce Dall, the General Manager of Ilitch Holdings casino, stated that upon reopening on August 5, they were able to bring back 50% of their workforce.

On Monday, the health insurance benefits of the workers who were displaced were scheduled to be discontinued.

Greektown made an announcement in June stating that they would commence the layoff of 621 employees, commencing on September 15th.

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