MGM Resorts Plans to Boost Profit $300 Million a Year Through New Cost Cuts
- Half of the savings will come from reduced labor spending
- Activist investors have built positions in casino operator
The MGM Resorts International Mandalay Bay Resort stands in Las Vegas, Nevada.
Photographer: Bridget Bennett/BloombergThis article is for subscribers only.
MGM Resorts International announced a new cost-cutting drive that’s intended to boost profit by $300 million annually, most of it over the next two years.
Half the improvement will come from labor savings, with the rest through improved sourcing of supplies and higher revenue, the Las Vegas-based casino operator said. The company employed 51,000 people full time in the U.S. at the end of 2017 and had previously introduced a plan that generated $500 million in profit improvement that year.