The Hidden Costs of Layoffs at Boyd Gaming: What Employees and Retirees Need to Know

Healthcare Provider Update: Healthcare Provider Information for Boyd Gaming: Boyd Gaming provides healthcare benefits to its employees through a partnership with several major insurance carriers. While the specific provider may vary by region and plan, it is known that companies like UnitedHealthcare are frequently used to provide ACA-compliant health insurance options for Boyd Gaming employees. Potential Healthcare Cost Increases in 2026: In 2026, Boyd Gaming employees can expect significant healthcare cost increases, driven by various market dynamics. With health insurance premiums under the Affordable Care Act projected to rise sharply-and in some states exceeding 60%-many enrollees could face a staggering 75% hike in out-of-pocket costs if enhanced federal subsidies expire. Factors such as ongoing medical inflation, rising prescription prices, and hefty insurer rate increases are complicating the landscape, thereby necessitating strategic financial planning for employees approaching early retirement or anticipating major healthcare needs. Click here to learn more

When a significant company like Boyd Gaming faces the tough decision of layoffs, the immediate financial consequences can often be surprising. For example, when a tech giant announced cuts in November 2022 involving 11,000 employees, the separation expenses alone amounted to nearly $975 million, averaging over $88,000 per affected employee. While these costs are substantial, they were reported to be offset by reductions in current expenses such as salaries, bonuses, and other benefits.

The Real Price of Layoffs at Boyd Gaming

Accounting for layoffs by simply calculating cost reductions and immediate savings can often overlook the deeper, more hidden costs. Research and expert analysis suggest that layoffs can disrupt productivity, morale, and overall company performance. Boyd Gaming employees might experience fear and a decline in morale, resulting in decreased work quality and an increase in workplace accidents and product defects. Additionally, companies like Boyd Gaming often face higher turnover rates, necessitating extra expenses to hire and train new employees. Other financial consequences include increased unemployment insurance tax rates and potential legal costs from discrimination lawsuits.

Indirect Costs and Long-term Impact for Boyd Gaming

According to Wayne Cascio, a renowned professor at the University of Colorado-Denver Business School, companies that opt for temporary measures such as furloughs instead of direct layoffs tend to regenerate and perform better financially up to two years later. This finding could be relevant for Boyd Gaming when considering different strategies to manage workforce reductions.

Separation Practices Across Industries and at Boyd Gaming

The approach to separation varies significantly across industries and geographic regions, and Boyd Gaming's practices might reflect this diversity. For instance, a quarter of U.S. companies ensure separation for all employees, while the global rate is slightly over 42%. In the healthcare sector, companies often offer more favorable terms, which can include extended medical benefits and compensation for increased leave time. As an example, Theseus Pharmaceuticals Inc. provided a severance package averaging $212,000 to each laid-off employee, one of the highest recorded by Bloomberg’s analysis. Understanding how Boyd Gaming's approach compares can provide insights into industry best practices.

Productivity Decline Post-Layoff at Boyd Gaming

Data from ActivTrak, which monitors employee efficiency through software, shows a tangible decrease in productivity following layoffs. For instance, among  seven companies  studied from January 2022 to April 2024, the average working time dropped by nearly an hour per day. This results in a loss of about 18 hours per month per employee, leading to significant financial losses over time. Boyd Gaming might need to consider these productivity impacts when planning workforce reductions.

Long-term Costs of Increased Turnover at Boyd Gaming

Implementing layoffs leads to an increase in voluntary turnover rates, which can be more costly than the layoffs themselves. According to a  hypothetical study  based on a company of 10,000 employees, if 10% of its workforce were laid off, voluntary quit rates could increase by 49%, leading to significant costs to replace these individuals, often amounting to 1.25 times their annual salary. Boyd Gaming could face similar challenges, requiring careful planning to mitigate these long-term costs.

Featured Video

Articles you may find interesting:

Legal and Compliance Costs for Boyd Gaming

The legal framework related to layoffs is complex and varies by state. Companies like Boyd Gaming engage external experts to ensure compliance with employment laws and to minimize the risk of discrimination lawsuits. Labor economists like Mike DuMond from the Berkeley Research Group often conduct several rounds of demographic analysis to ensure layoffs do not unfairly target protected groups. Additionally, the costs related to legal compliance, including the requirement for WARN Act notifications for mass layoffs, add another layer of expense.

Conclusion for Boyd Gaming Employees

The decision to proceed with layoffs, although often seen as a necessary step to cut expenses, involves many hidden and delayed costs. These encompass not only direct financial burdens such as separation and legal fees but also long-term consequences on employee productivity and Boyd Gaming's reputation. Understanding these complex dynamics is crucial for Boyd Gaming when contemplating workforce reductions as a strategy to cope with financial difficulties.