MGM notifies ‘large majority’ of entertainment, sports divisions of impending layoffs
MGM Resorts International will lay off the majority of workers in its entertainment and sports divisions effective Aug. 31, the company said, according to the Las Vegas Review-Journal.
Workers affected by the layoffs include venue managers, ushers and hotel entertainment directors, according to the newspaper. The company previously laid off several senior executives in May.
Laid-off workers will be allowed to seek support for expenses such as rent, utilities and groceries through the $14 million Emergency Grant Fund for employees, the layoff announcement stated.
Source – The Hill
The MGM Resorts 401k Savings Plan is a defined contribution plan with a profit-sharing component and 401k feature. This plan has a BrightScope Rating of 59. This plan is in the top 35% of plans for Total Plan Cost. The MGM Resorts 401k Savings Plan currently has over 47,800 active participants and over $1.6B in plan assets.
That being said, the rating of 59 versus a top rating of 85 could equate to 13 additional years of work and or over $127,537 in lost savings.
Administration of the plan and recordkeeper are both Prudential.
One of the key concerns is that the plan only has 18 investment options which is common for most 401k type plans.
Most 401k, Profit Sharing or ESOP plans do not have active management so there really is no one guiding the plan investments. What this means is that like most traditional investment companies, in the event of an economic downturn there is no method for automatically moving your portfolio to a lower risk profile.
With the WealthSentry system we participate in, accounts are automatically re-balanced to lower risk portfolios in the event of a severe economic downturn. Learn more in our guide, 6 Critical Steps You Must Take Now.
For an in-depth analysis of your options feel free to make an appointment, read one of our guides or participate in one of our workshops.
Wishing you the best.
Doug Reed, CRPC, AAMS