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MGM Cutting Employees, Too

By Chuckmonster on Thursday, 3rd December 2015 12:49pm
  » filed under Las Vegas  comments: 10


The fun hasn't stopped at MGM Resorts International, owners of Aria, Bellagio, Circus Circus, Excalibur, Luxor, Mandalay Bay, MGM Grand, Mirage, Monte Carlo, New York New York, home of the Profit Growth Plan, an internal company program designed by corporate executives to cut costs, increase profits and pump up MGM's stock so (at least) seven top executives can rake in $10 million dollars in free stock gift bonuses.

Profit Growth Plan initiatives include video poker comp drink tickets, variable "surge" weekend pricing at bars, new, increased, hidden or threatened fees, cutting corners on quality of comp offerings, the real possibility of charging all guests a fee to use the self-parking garage and splitting the company into two corporate entities that will yield more profit from the same assets via accounting changes. And these are the only programs we know about, there are dozens more in the pipeline.

With centralization of products and services, what happens to the employees who handled these tasks at the property level? They get their income and benefits rolled into the Profit Growth Plan's cost savings. *gulp* ...laid off.

I truly hate that multiple sources are telling VT that all departments, from public relations to purchasing, business analysts to IT have been subject to Profit Growth Plan-related staff reductions, with even more cuts on the way.

Hell, don't take my word for it. Check out this posting on job site Glassdoor.com dated November 18, 2015. The poster claims to be a "current employee" of MGM Resorts International with a 10 year career holding the title of "Vice President Human Resources":

There is no way to know if this Glassdoor poster's credentials-as-claimed are legitimate. I'm a little bit of a skeptic (teeny tiny). HR people know full well that terminations come with their job territory. This is particularly true for a company veteran at the "Vice President of Human Resources" level. On the other side of the coin, why not? Don't we all know dedicated professionals who care so much that they'll stand up for what they believe is right and just no matter the cost? How many VP of HR employees can there be? Two dozen sprinkled at the property level and maybe a half-dozen at corporate? If true, this employee is playing a very, very ballsy game of Jeopardy.

Even if the Glassdoor post is a hatchet job, the argument - deep personnel cuts related to the Profit Growth Plan - align the plan's stated cost cutting goals with the fiscal calendar and its relationship to the executive bonus plan.

Many companies specifically schedule larger scale layoffs for the end of the calendar year. End of year terminations clear the books of health care benefits, employee salaries and severance packages before the calendar year ends. The good news - if there is any good news to be gleaned from people losing their jobs - is that with the new year comes new budgets and new job openings at new companies.

And yes, there is a "President of Corporate Entities." His name is Chris Nordling. The linked video is worth it, if only to listen to assembled conventioneers response to his "Did you gamble in Aria's casino last night?!?!" question. He also fumbles through an explanation of NFC payment systems (Apple Pay) as if it was something MGM invented. LOL.

And lastly, while doing some research in MGM's human resources I stumbled on MGM Resorts "Vision, Mission & Values"... it is worth reading. I added the green lines for emphasis.

MGM Resorts Vision Mission Values

The Las Vegas tourism industry runs on employees. Executives set the tone, and hire the right senior members who hire the right managers who hire and train the employees that touch every single aspect of the thoroughly amazing moments we experience in town. They truly are the engine that the Vegas machine runs on.


Comments & Discussion:

In all of this non sense, its the institutional investors (T Rowe Price & Capital Research) that have the most to gain.

Been coming to Vegas since 1983 and have seen a definite shift from concentrating on taking care of visitors to boosting corporate profits by any means necessary. I have read may stories on various sites dogging TI, but I have to tell you that whoever Ruffin has running their joint knows something about customer satisfaction. Over the last 4 trips, wife and I receive 2 to 3 nights comped, resort fees waived (optional), $110 to $150 in free slot action, free meals (although the food is marginal), 2fers on show tickets and hassle free check in. The customer service by the bell desk and front desk has been awesome. On average our bags arrive at our room about 4 minutes following a phone call to the bell desk. I had to have management come to the room to open a malfunctioning safe. No charge. Imagine that, a prompt, human being helping me out with no fee! My point is....there is good customer service in this town if you seek it out and not be a dick about it. We try to avoid CET, Wynn and now MGM properties, due to the sneaky ways they are trying to take advantage of customers. It does cut down significantly on variety, but how else can I protest except with my wallet. In summary, we are watching what the old timers (Jackie G and others) have built up being torn down by corporate snots. Sucks. I get back from Vegas and a week later I am ready to go back again. Going to keep coming back until it stops being fun. For my next trip, MGM properties will be on my avoidance list. Thanks for keeping us informed. We enjoy your web site.

The Glassdoor entry is interesting. "Profit Hell Plan", doesn't recommend, negative outlook, yet still rates MGM 4 stars as an employer? Also - no opinion of the CEO? Anyone at VP level of anything has an opinion of the CEO. If this review is real, methinks they didn't want to get *too* real, lest their identity be suspected internally.

Having worked for a couple major news media companies during the past couple decades, this all sounds very familiar to me.

MGM Resorts International keeps taking body blow after body blow. What is happening in its corporate office and in Murren's inner sanctum? There's no question in my mind that VegasTripping is foremost in corporate discussions every day. Does MGM just ignore the justified criticism, or do they come back fighting, trying to enhance the corporate image?

@detroit Ignore... they already know about the greasy shit they're up to. To MGM, VT is a flea on their dog's fleas.

There are some more amazing quotables from that video at Aria linked above. A couple of them sound like the precursors of the PGP:

5:04 "By tracking your wins and losses, we know its no fun losing, but we leverage technology to help us care for you and get you to put that next bet on the table."
7:05 "When you leave Vegas, we know you leave it spent in every sense of the word"
7:19 "We care about you and we care about your wallet"

Well Hakkasan may be the next to be cutting staff if anything in this article is really true.


Maybe MGM hates everyone, customers and employees alike.

During a recent stay at Vdara, I was told that MGM removed the Keurig coffee makers not just from Vdara, but from all its properties. You can still have one, but it costs $20/night. I’m not sure if that includes any coffee or if you have to go to CVS to buy coffee pods.

The furniture in the room was pretty worn, with lots of dings and dents. One of the end tables by the couch had a large water mark on it. And instead of a lamp on each end table, as their web site shows, there’s now only one lamp, which must part of the electric bill profit plan. Of course, if they’d left the second lamp, they could have used it to cover the stain.

The closet had bedroom slippers, but there was no sign of the robes that used to be there.

I’m feeling lucky to even get the generic toiletries. By this time next year, there may be an extra fee for a bar of soap.

Back to Caesar’s?

Can confirm that they're no longer offering top shelf (or medium shelf, apparently) booze at Aria's table games. Tablemate the other night asked for Maker's Mark and was denied. F'ing Maker's Mark. Previous night I was drinking Woodford Reserve at Wynn.

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