With nearly 1,000 casinos shut down in 43 states due to the coronavirus pandemic, gaming companies have had to drastically trim their workforce. In a radical move, MGM Resorts International has laid off several high level gaming executives and consolidated their management structure.
The Las Vegas Review Journal reported that the four presidents of MGM Resorts Las Vegas Strip properties would not return. The newspaper cited sources as saying that Randy Morton of Bellagio, Cindy Kiser Murphey of New York-New York, Cliff Atkinson of Luxor and Eric Fitzgerald of Excalibur were laid off. Other senior level management were also dismissed.
MGM Acting President & CEO Bill Hornbuckle—who took over from longtime CEO Jim Murren last month—said that New York-New York and Bellagio would be the first two properties to reopen when the date is finalized, with other properties to follow.
While MGM has already laid off some 63,000 workers nationwide, the latest layoffs were the first at the upper levels of management.
Over the weekend, MGM announced the revised lineup of property presidents and top executives, responsible for more than one of the MGM properties on the Strip:
Bellagio and Park MGM/NoMad:
Anton Nikodemus, President
Franz Kallao, SVP of Hospitality
Doug Sandoval, CFO
ARIA and Vdara:
Steve Zanella, President
Mark Lefever, CFO
Mandalay Bay/Delano and Luxor:
Chuck Bowling, President
Kevin Holyfield, VP Hospitality
Heith Bettelman, CFO
MGM Grand Las Vegas and New York-New York:
Mike Neubecker, President
Patrick Miller, SVP Hospitality
Mark Czerniak, CFO
The Mirage and Excalibur:
Nik Rytterstrom, President
Jeff Segan, VP Hospitality
Sarah Rogers, CFO
In Atlantic City, Borgata Hotel Casino & Spa’s Chief Operating Officer and President Marcus Glover has been replaced by MGM executive Melonie Johnson. Glover was appointed to run Atlantic City’s most lucrative property in 2016, shortly after the Borgata was acquired by MGM.
Melonie Johnson, who has been with MGM since 2015, will now take over Glover’s duties. Johnson’s prior position was president and COO of MGM National Harbor in Maryland. Johnson took the helm of the $1.4 billion National Harbor resort in November 2017, about a year after its opening.
The Borgata has also promoted Hugh Turner to chief financial officer. Turner formerly served as vice president of finance for the property since it opened and has been there for 18 years.
Just the day before the MGM announcement, Station Casinos revealed that it has begun executive cuts as well, both at the property and corporate levels.
“We have tried to retain our entire team, but in the face of this continued uncertainty we can no longer do so,” CEO and Chairman Frank Fertitta III said in a letter sent to staff last week.
Fertitta said that the company would open several properties in phases once the opening date is announced. Red Rock Resort, Green Valley Ranch Resort, Santa Fe, Boulder Station, Palace Station, Sunset Station and the company’s Wildfire casinos are likely to be first out of the gate. After those openings are evaluated, the Palms, Fiesta Henderson, Fiesta Rancho and Texas Station may ramp up, but it depends upon business, says Fertitta. Significant layoffs should be expected at those second phase properties, he said.
“When we are permitted to reopen, we don’t know what business will look like,” Fertitta said, “other than knowing that business levels will be lower as a result of this unprecedented crisis.”
“This has been the most challenging and painful situation in our company’s history,” Fertitta wrote in the letter. “We are hopeful though that Las Vegas will rebound swiftly and allow us to rehire many of our valued team members when we emerge on the other side of this crisis.”
