MGM Resorts International plans to lay off 18,000 furloughed workers beginning on Monday, the Wall Street Journal reports.
Why it matters: The number represents a quarter of the resort giant's U.S. workforce and highlights how the hospitality sector has been ravaged by the effects of the coronavirus pandemic.
- The company says it plans to rehire workers once demand for tourism and travel returns.
What they're saying: "While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent," MGM CEO Bill Hornbuckle wrote to employees.
- "The fundamentals of our industry, our company and our communities will not change. Concerts, sports and awe-inspiring entertainment remain on our horizon."
The big picture: Roughly 33% of U.S. employees furloughed in March at the start of the pandemic were permanently laid off by July, per the Washington Post.
- The airline industry, restricted by its federal stimulus terms to keep employees on board until Oct. 1, is also facing steep cuts. American said this week that it would lay off 19,000 employees. Delta Airlines plans to furlough 2,000 pilots, and United said in July it would furlough 36,000 employees.
