MGM Springfield Foresees Heavy Layoffs

The employees of the MGM Springfield are facing layoffs. Two months after closing in response to the coronavirus, MGM is contemplating laying off as many as 1,887 workers, at least some of them permanently.

The MGM Springfield casino in Massachusetts fears it will be forced to lay off as many as 1,887 workers at the end of August when temporary furloughs are due to end.

The casino, which opened two years ago, filed a notice with the state May 5 that warns workers of this possibility. The casino started the year with more than 2,000 employees, a third less than what it had promised the Massachusetts Gaming Commission that it would employ when it was selling the casino resort to the state panel that granted the license.

MGM CEO Bill Hornbuckle last week sent a letter to MGM employees all over the U.S. warning of the possibility of layoffs. Although MGM expects to be able to reopen its casinos soon, it also anticipates that travel and gaming will be hobbled at least for several months and maybe longer.

He informed employees that they would remain furloughed to the end of August, and then would be let go permanently if they hadn’t been reactivated before then. He added, “Consumer confidence is key to economic recovery and thoughtful reopening strategies are vital to building public trust.”

The MGC has extended the shutdown of the Bay State’s three casinos, the MGM Springfield, Encore Boston Harbor and Plainridge Park slots parlor several times. Currently they will remain closed until May 18, although that date could be extended.