MGM Cuts Continue

MGM Resorts last week chopped 254 management positions, with another round coming up soon, according to Chairman and CEO James Murren (l.). The job reduction is part of the MGM 2020 plan that will result in a new operating model.

MGM Cuts Continue

When MGM Resorts Chairman and CEO Jim Murren announced the company’s MGM 2020 plan to usher the company into the next decade and beyond, he said that the plan would include $100 million in salary saving, which means job reductions. It started with buyouts of some of the company’s top executives and last week aimed a bit lower, with the loss of 254 management jobs across the company.

The job losses—along with another round scheduled soon, according to Murren—are “regrettable” but meant to be a “comprehensive change meant to be transformative,” said Murren in a memo to all employees

Murren acknowledged that the job cuts and the reorganization process would be “stressful” and “difficult” but that it would result in a stronger company.

Last week’s cuts affect only management level employees but no unionized employees.

Already gone from MGM are CFO Dan D’Arrigo, MGM Grand President Scott Sibella (who recently accepted the same position at Resorts World Las Vegas) and longtime spokesman Alan Feldman, who will stay on as a consultant.