DETROIT, Mich. (WXYZ) — MGM Grand Detroit expects that lay offs announced in March will be long-term due to the COVID-19 crisis. In a letter to the state, sent May 5, the company says 2,632 employees will be impacted by the continued closure of the business.
"I write to advise you on our updated assessment of the current environment related to the COVID-19 virus and its impact on our business," the notice read. "Beginning during the 14-day period from March 2, 2020 through March 15, 2020, the downturn in our business due to the COVID-19 pandemic and the subsequently announced government ordered closures of several of our facilities caused us to lay off most of our workforce at MGM Grand Detroit, LLC d/b/a MGM Grand Detroit,"
With the extension of Michigan's stay-at-home order, the company says it has had to reassess its reopening date. And because of the extended closure, the business is expected to have a continued decrease in revenue, resulting in continued lay offs.
"We were optimistic at the time of the initial layoff in March that we would be able to reopen quickly. However, we have had to reassess our reopening date given the duration and severity of the COVID-19 pandemic and its effects on MGM Grand Detroit," the letter read.
The layoffs are expected to be temporary, however, the company says that they are "unable to assess a more specific return to work date" as of now, and expect that the lay offs may last more than six months.