LAS VEGAS – Layoffs and furloughs are starting next week at MGM Resorts International in response to a slowdown in demand due to COVID-19 fallout.

“We just don’t know to what extent,” said Rocky Colavito, Jr., a Bellagio blackjack dealer who got news of the cuts before walking onto the casino floor for his Friday night shift.

MGM President Bill Hornbuckle sent a letter to employees Friday announcing workforce reductions and furloughs would begin next week.

"These decisions are never made lightly," Hornbuckle wrote, "and we deeply regret the hardship it will place on these individuals and their families."

Laid off workers will maintain benefits through June 30, the letter said.

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Read the letter in full here:

Bill Hornbuckle Letter 03.13.2020_FINAL by Reno Gazette Journal on Scribd

'The travel industry has been challenged'

Business demand has decreased enough in the wake of COVID-10 to force MGM Resorts to close MGM Northfield Park in Ohio, close buffets and suspend operations of all nightclubs, day clubs, spas, fitness centers, salons and spas.

"As the nation grapples with the effort to contain the coronavirus," Hornbuckle wrote, "the travel industry has been challenged, and our company is no different."

More closures are coming next week. On Monday, 150 food and beverage outlets will close – with more shuttering "on a rolling basis."

Several MGM employees test positive

Hornbuckle revealed several MGM Resorts employees have tested "presumptive positive" for coronavirus.

One of the those employees worked at the Luxor Hotel & Casino on the Las Vegas Strip, according to MGM spokesman Brian Ahern. Another worked at the Wet Republic pool at the MGM Grand.

"We expect that there will be more in the coming days," Hornbuckle wrote.

All corporate employees with teams able to work from home have been advised to do so starting next week, he said.

Story continues

'MGM Resorts will weather this storm'

The spread of COVID-19 has staggered stock prices of Las Vegas casino companies like MGM Resorts.

In late February, the company's stock price hovered around $32 per share. The stock today is less than half that.

MGM is now consulting with "industry colleagues, trade associations, and Federal delegation on legislation being considered by the Federal Government to provide financial relief for America’s workers and businesses," Hornbuckle wrote in the letter. "There is much about this unique crisis that is unknown. But one thing that I do know is that MGM Resorts will weather this storm."

This article originally appeared on Reno Gazette Journal: Coronavirus: Layoffs coming to MGM Resorts employees as tourism slows