Coronavirus pandemic: Las Vegas casinos and mega-resorts shut shop, major layoffs to start soon
Coronavirus outbreak has put several cities across the world on lockdown and is not only damaging people’s health, but is also affecting several sectors, including travel, food and entertainment. According to the UN Conference on Trade and Development, the COVID-19 outbreak might cost the global economy $1-2 trillion in 2020.
Hotels, casinos and mega resorts in Las Vegas have been hit hard as the disease continues to spread in Nevada. Some of the most well-known hotels and casinos under MGM Resorts International will close their doors until at least May 1. These hotels, resorts and casinos include big names like the Bellagio, the MGM Grand, Mandalay Bay, the Mirage, Luxor, New York-New York, Excalibur and Park MG that employ tens of thousands of workers.
The MGM announced on Sunday that it will cease casino operations on March 16 followed by hotel operations on March 17. Following the company’s announcement, Wynn Resorts also said in a statement on the same day that Wynn Las Vegas and Encore’s operations will be halted for two weeks.
In a statement given to Las Vegas Review Journal, MGM Chairman and CEO, Jim Murren, said that they are temporarily shutting down the operations for “the good of our employees, guests and communities.”
“It is now apparent that this is a public health crisis that requires major collective action if we are to slow its progression. We will plan to reopen our resorts as soon as it (is) safe to do so and we will continue to support our employees, guests, and communities in every way that we can during this period of closure.”
The statement provided by Murren also stated that further details on closing procedures, timelines and other issues related to the temporary suspension would be released soon. However, it mentioned that the company would begin furloughs and layoffs, beginning “in areas most immediately impacted by the slowdown in demand”.
The letter addressed to the MGM employees added that the full-time employees being furloughed or laid off will be paid two weeks from their last day of work, while all the employees who are on the company’s health plan will maintain benefits through June 30.
The statement also noted that salaried employees “should expect to continue working until further notice”.
“We deeply regret the strain it will cause families and our community partners, and we will do all we can to mitigate it. When we do (reopen), we will be ready to welcome the world back to our properties,” the letter signed by Murren read.
The MGM announcement came soon after the Centers for Disease Control and Prevention issued new guidance advising organizers to cancel or postpone in-person events with over 50 people in the US for the next 8 weeks.
Nevada Governor Steve Sisolak has also made an announcement to stop the spread of the novel coronavirus, saying that all public, private and charter K-12 schools in the state will be closed until at least April 6.