Vail Resorts is furloughing nearly all of their year-round hourly employees. Salaried employees are getting at least a five percent pay cut.
Park City Mountain Director of Communications Margo Van Ness says 391 employees at the resort will be furloughed for at least the next one to two months starting this Saturday, the result of cost-saving measures.
Vail CEO Rob Katz announced the company-wide furloughs Wednesday. In a written statement, Katz said the COVID-19 crisis has hit the travel industry particularly hard. All of Vail’s ski mountains, lodging, retail and transportation businesses are shut down and Katz said it’s becoming less clear when they will reopen.
Park City Mountain is owned by Vail, and closed March 15th, four weeks before it was scheduled to close. Katz says the early closure of Vail’s North American operations will cost the company at least $180 to $200 million dollars.
In addition to the furloughs and the pay cuts, Vail is suspending the Company’s 401(k) match for the next six months and eliminating the cash compensation for members of the Board of Directors for six months. Katz said he will also give up his salary during that time.
The furloughed employees will still have full healthcare coverage, with Vail paying all premiums. Van Ness said after the furloughs, 217 people will still be working at Park City Mountain. Salaried employees’ pay cuts start at 5% and go up to a 25% reduction for most senior executives.
Katz also said it’s possible COVID-19 challenges may force Vail to materially delay or cancel the upcoming summer season. And if that happens, more measures might be needed.
