What happened
Actions of MGM Resorts (NYSE: MGM) They were dropping more than 6% in Monday afternoon operations after Las Vegas casinos notified their staff that if they did not withdraw from the permit by August 31, they would be fired later.
And that
Pursuant to the Federal Worker Adjustment and Recycling Notification Act (WARN Act), major employers must notify their workers when mass layoffs are expected to occur. MGM Resorts, Wynn Resorts, Tropicana and other casino operators sent such notifications.
Image source: Getty Images.
Now what
MGM told its employees that it had originally hoped that the casino closings would be brief and that full operations could be restored. But the pandemic has progressed and, based on currently available data, it does not appear “it will be safe to restart programs before August 31, 2020.”
That means the “vast majority” of employees in the entertainment and sports division will be laid off on that date. Health benefits will also be canceled on that date, although employees who are laid off will be able to apply for casino emergency grants until November 29, 2020.
Actions of Las Vegas Sands, MGM and Wynn fell today, although MGM was the most affected.
