MGM Resorts is laying off about 18,000 employees - more than a quarter of its pre-pandemic US workforce, as punters continue to avoid casinos.
Most of the cuts will fall on Las Vegas, where MGM is the biggest casino operator and has struggled to fill its hotels since Nevada began reopening in early June. Two casinos, the Park MGM in Las Vegas and Empire City in New York, remain closed.
“While we have safely resumed operations at many of our properties and have returned tens of thousands of our colleagues to work, our industry - and country - continues to be impacted by the pandemic, and we have not returned to full operating capacity,” chief executive Bill Hornbuckle told staff.
The company will continue to pay healthcare benefits until the end of September and anyone recalled to work by December 2021 will maintain their seniority, he said. MGM employed about 70,000 full and part-time workers at the end of last year.
Shares in MGM rose 5.5pc in New York on Friday but are down about a third compared with their price at the start of the year.
Visitor numbers to Las Vegas fell 61pc to 1.44m in July - the first full month after Nevada casinos reopened.
The lack of any convention guests meant hotel occupancy was just 43pc, or less than half what it was a year ago.
Rooms at properties such as the MGM Grand and Caesars Entertainment’s Paris casinos can be had for less than $50 a night.
The Las Vegas numbers underscore the difficulties faced by economies dependent on air travel, with consumers still reluctant to venture far beyond their homes for entertainment.
Meanwhile, Coca-Cola will offer voluntary redundancy to about 40pc of its North American workforce in a cost-cutting drive.
About 4,000 workers will be offered packages with benefits if they agree to leave, the soft drinks giant said.
A similar program will follow in other countries and there will also be an unspecified number of layoffs, Coca-Cola added.