MGM Resorts to lay off hundreds of managers, more to come

LAS VEGAS (KTNV) — MGM Resorts International says it will lay off 254 employees.

The company told 13 Action News that the cuts are nationwide and will impact properties beyond Las Vegas.

MGM Resorts International also said it would be non-union jobs impacted but will work with all affected employees on career transition services

In January, MGM announced plans to reduce costs to help grow the company in a program called "MGM 2020."

RELATED: MGM announces plan to reduce labor costs to grow company

The program is meant to lay the groundwork for the company's digital transformation, and MGM hopes it will result in a 3 percent reduction in labor costs.

Company CEO, Jim Murren, wrote in a letter distributed to employees on Thursday, reading in part:

"We need to create a company that is streamlined, nimble and empowers leaders. If we want to unleash innovation and support dynamic new ideas, we need a new way of operating. These impacts are being felt across the Company and this is a comprehensive change that is meant to be transformative."

The full letter is available below:

Dear Colleagues,

When I announced MGM 2020 back in January, I knew it would be a long and challenging road to implementation. I pledged you would hear from me once decisions on our new operating model are completed and it is ready to implement. Thank you for your patience and support as we’ve worked through the process to get to the place where we find ourselves today.

In preparation for MGM 2020, we studied the changing economic landscape, shifting consumer preferences and what these mean for our workforce. We engaged in the necessary and difficult process of considering the jobs, resources and organization structures of today and tomorrow. We concluded that incremental change will not be enough to provide the type of entertainment, gaming and hospitality experiences the next generation of consumers and guests wants from one of the world’s most iconic brands.

We need to create a company that is streamlined, nimble and empowers leaders. If we want to unleash innovation and support dynamic new ideas, we need a new way of operating. From the beginning we have been transparent that our strategy would include reskilling, reorganization and – regrettably – a reduction in our workforce. These are difficult decisions, ones no leader wants to make. But they set the stage for future growth and greater job creation in the long run, a responsibility I take seriously as the leader of this Company.

During the course of the day today, we will have notified 254 people that their positions with MGM Resorts have been eliminated, and in a few weeks, we will have one more round of position eliminations. These impacts are being felt across the Company as this is a comprehensive change that is meant to be transformative. As such, within the next day, you will hear directly from your leadership team to help provide some clarity around these changes and to answer any of your questions.

I commit to you that these changes will be completed in the coming weeks when the implementation of the new operating model concludes. With the new model in place, we will turn our attention to operating the properties, providing best in class guest service, and getting ready for our digital transformation which is the cornerstone of Phase Two of MGM 2020. We will look to new technologies to help us to target, attract and retain new customers to grow our competitive advantage.

I know this day is going to be difficult on everyone. I also know that changes like this can be stressful and I regret the impacts on the individuals whose roles are being eliminated. We would not be taking these steps if we did not believe they were necessary to serve the long-term interests of the Company. These decisions will help make our Company better and stronger for years to come, but I also know that doesn’t help lessen the anxiety created for you, your families and your teams. I am confident in our ability to address the challenge before us and also know we are where we are as a Company because of our dedicated employees.

Again, I appreciate your patience and thank you for all of your continued hard work.