MGM Cuts 18,000 Furloughed Workers; Shares Rise

This post was originally published on this site — MGM Resorts (NYSE:MGM) rose 4% after reports that 18,000 furloughed workers will be cut permanently. 

The company, which had some 70,000 employees as the start of 2020, is sending out separation letters to the employees today, CNBC reported.  

“Nothing pains me more than delivering news like this,” Chief Executive Officer Bill Hornbuckle wrote in the letter, CNBC reported. “The heart of this company is our employees and the world-class service you provide. Please know that your leadership team is working around the clock to find ways to grow our business and welcome back more of our colleagues.”

Shares are down 30% this year

MGM has casinos in New York and Las Vegas that are closed. Federal law requires workers to be given a separation date if they’re furloughed for longer than six months. Aug. 31 marks six months of administrative separation for the furloughed MGM employees.