MGM Springfield will lay off 1,000 furloughed employees, part of 18,000 job cuts being made by its parent company nationwide.
The workers had been on temporary furlough since the coronavirus shutdown hit in March, according to a spokeswoman for MGM Springfield.
The nationwide cuts were first reported Friday by The Wall Street Journal, which said the layoffs represent one-fourth of the company’s pre-pandemic workforce of 68,000 U.S. employees.
Workers had been getting paid company health care through their furloughs. That benefit would have ended Aug. 31 but has been extended until Sept. 30.
The employees who were separated from the company this week also remain on the recall list and can retain their seniority, according to a letter from MGM Resorts International CEO Bill Hornbuckle.
Before the pandemic, MGM Springfield had 2,000 employees. In July, it reopened with 800 workers, with plans to call more people in as business ramps back up.
MGM had promised the city and the state it would reach a payroll of 3,000, a goal that was never met even pre-pandemic.
Before MGM Springfield opened in August 2018, company officials told the state and the city it would bring in an average of $ 34.8 million a month in gross gaming revenue from slot machines and table games like poker. Instead, the average over its first 18 full months was $ 21.5 million.
July’s gross gaming receipts at MGM Springfield were $ 10 million, according to the state Gaming Commission. That’s with the restrictions and not having been open for the full month.
The tourist industry has been particularly hard hit by the pandemic. According to state labor department figures released last week, the leisure and hospitality sectors lost 156,100 compared with this time last year. That’s a decline of 41.3%, by far the highest percentage decline and the biggest decline in terms of number of jobs of any sector of the state’s economy.
At MGM Springfield, the casino and resort are operating at about one-third capacity.
The casino’s hotel and spa are still closed and dining options are limited to the Tap Sports Bar, South End Market and Costa’s pizza counter. The Chandler Steakhouse, Costa restaurant and Topgolf Swing Suite are closed.
The movie theater, which is managed by Regal Cinemas, opened Friday.
MGM Springfield also said the employees separated this week will keep access to the company’s online jobs site, where they can continue to view and apply for jobs before postings are public, see the latest company news, and maintain their employee profile.
The casino will continue supporting current and former team members through the MGM Employee Emergency Grant Fund. Employees laid off Friday remain eligible for financial support from the fund through Nov. 29.
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