Proposed Deals Put 17 Strip Resorts Under New Owners, Exposing 70,000 Workers to Cuts
CZR•Two multibillion-dollar deals would transfer 17 Las Vegas Strip resorts from Caesars and MGM to private owners Fertitta Entertainment and People Inc., exposing 70,000 workers to potential corporate-level job cuts. Union contracts safeguard 35,000 Culinary Workers Union Local 226 members’ benefits and seniority, though management positions face scrutiny under ownership.
1. Proposed Transactions Overview
Two multibillion-dollar deals less than a week apart would transfer 17 Las Vegas Strip resorts from Caesars Entertainment and MGM Resorts International into private ownership groups led by Fertitta Entertainment Inc. and the Barry Diller-backed People Inc. The transactions would take both companies private, removing them from public markets.
2. Workforce Scale and Composition
Combined, Caesars and MGM employ approximately 70,000 workers in Southern Nevada, including about 35,000 members of Culinary Workers Union Local 226—roughly 60% of the union’s membership—across 17 resorts and associated operations on the Strip.
3. Union Contract Protections
Collective bargaining agreements require successor owners to honor existing terms, preserving employees’ seniority, benefits and employment rights. Union leaders emphasize these safeguards should shield frontline and property-level staff from immediate job losses following ownership changes.
4. Management and Corporate Consolidation Risks
Hospitality experts warn that mergers often lead to corporate-level staff reductions as overlapping functions are consolidated. Management and back-office roles at Caesars and MGM face heightened scrutiny as potential targets for cost-cutting under new private ownership.
