MGM Grand Detroit to lay off 1,100 employees as COVID-19 slows business

As part of MGM Resorts International's nationwide downsizing plan, MGM Grand Detroit is reportedly planning to cut about 1,100 jobs because of slow business amid the coronavirus pandemic. 

MGM Resorts International is reportedly laying off 18,000 of its furloughed workers, effective Tuesday, because of slow business amid the coronavirus pandemic, the Detroit Free Press reports. 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 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.

The contraction "will likely result in significant budgetary shortfalls across a number of state and local governmental entities," he said.