May 30, 2019
I want to begin this note by thanking so many of you for your patience, support and focus over the last several months. Redesigning an organization to achieve transformational change is difficult; I have been deeply impressed with your personal leadership and commitment to embracing the challenging task of implementing MGM 2020.
Just as I did previously, I am reaching out to keep you informed as we conduct the second and final round of major organizational changes that have been planned as part of 2020. Since our last round of position eliminations, we have made additional organizational changes to leadership structures that resulted in 222 individuals whose positions were eliminated. Additionally, today, we will be meeting with 557 individuals to let them know their positions at the Company have been eliminated. As is our practice, we have taken strides to ensure our impacted colleagues were offered other options if those existed and we have provided a non-working notice period where health benefits will continue and severance to try and ease a life-changing transition. I stand behind the decisions we have made and believe them necessary to assure our future, but I deeply regret the impacts they have on individuals and their families.
The changes we are making today bring us closer to concluding the foundational work of MGM 2020 during which we streamlined our operating model and reduced our salaried staff by over 12 percent. While we will always seek opportunities to operate in the highest performing way possible, we believe that we will move into the growth chapter of MGM 2020 with a sound organizational structure. You will hear much more from me and our MGM Resorts leadership team about this exciting phase of investment and future growth.
I want to assure you the decisions of the last several months were made deliberately, carefully and with gravity. Having done this foundational work, we will be stronger and better prepared for continued success and industry leadership in 2020 and beyond.
Once again, you have my deepest gratitude for your steadfast commitment. I look forward to building a vibrant future for MGM Resorts.