MGM Resorts will lay off 18,000 of its furloughed employees starting next week

• MGM Resorts told its staff on Friday it plans to lay off 18,000 employees starting next week.
• About 62,000 employees were furloughed in March due to restrictions related to the COVID-19 pandemic.
• "While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent," CEO Bill Hornbuckle wrote in the letter to employees.

On Friday, MGM Resorts International told its staff it would lay off 18,000 of its furloughed employees in the US starting on Monday.

According to a letter sent from CEO Bill Hornbuckle to MGM Resorts employees, the company employed 52,000 full-time and 18,000 part-time workers in the US as of late last year, Reuters reported.

"Federal law requires companies to provide a date of separation for furloughed employees who are not recalled within six months. Regrettably, August 31, marks (that) date," Hornbuckle said.

Hornbuckle said that laid off employees will remain on the company's recall list and will retain benefits and seniority if they are rehired by the end of next year.

"While the immediate future remains uncertain, I truly believe that the challenges we face today are not permanent," Hornbuckle wrote in the letter.

In July, gambling revenue was down 39% from last year, a slump spurred by the lower numbers of vacationers and visitors during pandemic restrictions, The Wall Street Journal reported.

Due to the pandemic, MGM had to shut down all of its casinos and furlough about 62,000 employees in the US in March.

Tens of thousands of employees were rehired when pandemic restrictions eased and casinos were able to reopen. However, 18,000 of its workers will no longer be employed by MGM starting next week.

MGM adds to the growing list of companies that are laying off large numbers of employees.

The airline industry is facing similar job cuts due to the pandemic and American Airlines announced this week it will cut 19,000 workers by October. United Airlines also said that it would need to furlough more than 2,800 pilots, 21% of its total pilot workforce, if it did not receive further US government aid. The furlough would be the biggest of its kind in the company's history.

Earlier on Friday, Coca-Cola said that it would cut thousands of jobs since sales have slowed during the pandemic, Reuters reported.