Big changes are coming to MGM Resorts International properties in Las Vegas. From shakeups in leadership to investments in technology, the plan is called “MGM 2020.”
It is a company-wide initiative that executives hope will reduce costs, increase profits and help MGM grow in the future. Part of the plan is centralizing employees.
MGM Resorts International says centralization of company functions will allow them to increase their earnings by $200 million by the end of 2020.
They say half of that money will be driven by labor savings so, employees will likely be impacted. This extends to company leadership, as well.
8 News Now confirmed and reported last week that Scott Sibella, president and COO of the MGM Grand, was parting ways with the company as part of a “voluntary resignation program.”
The company also tells 8 News Now many other top-level executives and employees are being offered the program and many positions are being reassigned.
While it’s not unusual to hear of hotel and casino staff positions re-evaluated, hospitality experts say it isn’t surprising to see the same for leadership.
“I think any kind of company is always looking at how they can trim payroll and keep employment expenses down, and certainly early retirements could be one way to do that,” said Associate Vice Provost David Schwartz , UNLV. “I guess it’s the same thing, you know, everybody’s got a salary, so I guess everybody is subject to that.”
MGM 2020 also focuses on key investments in technology which the company says will lay the groundwork for its digital transformation. They expect that to add another $100 million increase in earnings by the end of 2021.
The company also tells 8 News Now, many other top level executives and employees are being offered the program and many positions are being reassigned.
MGM 2020 also focuses on key investments in technology which the company says will lay the groundwork for its “digital transformation.”
They expect that to add another $100 million increase in earnings by the end of 2021.