Borgata Lays Off Nearly Half Of Workforce
Atlantic City’s Borgata Hotel Casino, which is operated by casino industry giant MGM Resorts International, has confirmed having reduced its workforce by nearly half. This following operator MGM’s decision to lay off at least 2,295 of Borgata employees due to significantly reduced revenue income caused by a gradual commercial restart. Only 3,100 of a workforce formerly 5,395 strong now remain employed by the popular New Jersey hotel and casino.
MGM president and chief executive Bill Hornbuckle has in the meantime said that the decision to lay off nearly half of the famous Borgata’s staff profile was no easy call to make and that it pains him more than anything else to have to convey news of such an unfortunate nature. The hardship that being laid off unavoidably places on individuals as well as their families, said the CEO, is something the operator deeply regrets.
MGM Hopes To Recover, Rehire
The hope, continued Hornbuckle, is that MGM will eventually be in a position to rehire many of the employees it has had no other option but to lay off due to the financial difficulties caused by the global health crisis. In the event that the industry does make a reasonable or hopefully even full recovery, re-employment may become possible over time, said the CEO.
But the Borgata isn’t the only of MGM Resorts International’s operations affected by recent layoffs. The company on August 31st announced a devastating total of 18,000 layoffs across the U.S.
Aside from the actual layoffs confirmed during the Friday announcement, many people employed by the casino and resorts giant remain on furlough instead of completely laid off. These workers remain in MGM’s employment – only on a reduced basis. Individuals currently furloughed will according to the operator group continue to receive health benefits through September 2020.
MGM also previously confirmed that those employees re-hired back into former positions by the end of 2020 will also retain their former seniority within the company’s structure.
Borgata Sues Rival For Poaching
The Borgata has had to deal with its fair share of challenges since the onset of the 2020 crisis. Not only has it had to lay off nearly half of its workforce, but it has also lost at least six of its key employees to rival Atlantic City operator Ocean Casino Resort.
The loss of two of those employees, namely William Callahan and Kelly Ashman Burke, represents a potentially devastating blow to the popular casino and resort. Callahan, for one, hired on by the Borgata late in July, was responsible for dealing with high rollers typically in the habit of spending anywhere between $1.5 million and $4.5 million per single visit to the popular casino.
Now working for said rival operator, Callahan has allegedly refused to return his company phone to Borgata management. The phone most likely contains important contact information for several Borgata high rollers.
The casino is allegedly now accusing Ocean Casino Resort of having poached the aforementioned staff members and has proceeded to file a lawsuit against the rival operator.