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The MGM Grand Detroit casino plans to cut about 1,100 jobs as part of MGM's nationwide downsizing plan, a casino representative said.
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MGM Resorts International is reportedly laying off 18,000 of its furloughed workers, effective Tuesday, because of slow business amid the coronavirus pandemic. Health insurance benefits for the affected workers will run through Sept. 30.
Detroit's three casinos reopened Aug. 5 with capacity restrictions, 4½ months after having closed for the pandemic.
The three properties' 15% capacity restriction is among the strictest COVID-19 rules in the country.
Mgm Detroit Casino Jobs
More: Ready or not, Detroit's three casinos reopen Wednesday with capacity restrictions
MGM Grand Detroit employs about 2,800 people. The other two casinos, MotorCity Casino Hotel and Greektown Casino-Hotel, have not announced any similar permanent layoff plans.
'Not only will the impact of the layoffs ripple through the rest of the economy, but the contraction in gaming revenues also means fewer tax dollars will be collected,' casino industry observer Alex Calderone, managing director of the Birmingham-based Calderone Advisory Group, said about the MGM's 18,000 layoffs.
Mgm Detroit Casino Jobs
The contraction 'will likely result in significant budgetary shortfalls across a number of state and local governmental entities,' he said.
Mgm Grand Detroit Casino Jobs
Contact JC Reindl:313-222-6631 or jcreindl@freepress.com. Follow him on Twitter@jcreindl. Read more on business and sign up for our business newsletter.
Mgm Grand Detroit Casino Jobs
This article originally appeared on Detroit Free Press: MGM Grand Detroit casino to cut 1,100 furloughed workers as pandemic slows business