MGM Issues 18K Layoffs As Furloughs Become Permanent

MGM Resorts International MGM will lay off 18,000 workers starting Monday.

MGM's Reported Losses Contributing: With global travel slowed tremendously, MGM reported over $1 billion in losses during the second quarter.

"I truly believe that the challenges we face today are not permanent,” CEO Bill Hornbuckle wrote in a letter to workers, according to The Wall Street Journal.

The company will keep the information of employees who rejoin MGM by the end of 2021 and allow them to retain their current seniority and benefits, the report said.

MGM Resorts joins other companies this week that announced further or impending layoffs, including American Airlines Group AAL and Delta Airlines, Inc. DAL

MGM has 68,000 employees before the pandemic, WSJ said.

MGM Price Action: MGM shares were trading 5.18% higher at $23.98 at the time of publication Friday.