Vail Resorts announced a two-year company transformation plan Thursday afternoon that includes job cuts to corporate and operational staff.
Over the past 10 years, the company said it has grown from 10 owned and operated resorts to 42 across four countries, and has doubled the size of its workforce.
Now, Vail is looking to “transform resource efficiency” given its scale, its common enterprise technology ecosystem, and its data and analytics capabilities.
The company is targeting $100 million in annualized cost savings by the end of its 2026 fiscal year through scaled operations, global shared services, and expanded workforce management.
Job cuts will impact less than 2% of the company’s total workforce, including 14% of its corporate staff and less than 1% of operational employees, Vail said.
In the fiscal year ended July 31, the company employed 7,600 year-round employees and 44,900 seasonal employees, according to Vail filings with the SEC. The Daily reached out to Vail for clarity if it included both year round and seasonal employees as part of its total workforce, and the company declined to provide specific numbers.
“No matter how big or small the impact of the position eliminations, we do not take lightly any decision that affects our team members,” Vail Resorts CEO Kirsten Lynch said in a statement announcing the restructuring plan.
Vail Resorts’ 2024 Fiscal Year Results
Vail Resorts CEO Kirsten Lynch. Photo courtesy of Vail Resorts.
The company also reported earnings results Thursday afternoon.
Total revenue was essentially flat at $2.8 billion for the fiscal year ended July 31.
Total skier visits dropped 9.5%, the company said largely due to lack of snow in North America and Australia and a return to normal participation patterns post-COVID.
Total lift revenue increased 1.5%, to $1.4 billion, with pass revenue up 9.4%.
Ski school revenue rose 6%, while dining revenue increased 1.3%.
Retail sales dropped 13.8% and rental sales fell 10%. The drop in skier visits hurt both retail and rental sales.
Lodging revenue declined 1%.
Total company net income dropped 14% to $230.4 million
Upcoming Season Pass Sales
Pass product sales through September 20 for the upcoming 2024/2025 North American ski season fell 3% in units and increased approximately 3% in dollars compared to the prior year. Pass sales in dollars benefitted from an 8% price increase.
“Our overall results for the year highlight the stability and resilience of our advance commitment strategy,” Lynch said in a statement.
Vail Resorts operates 42 mountain resorts and regional ski areas including Vail, Beaver Creek, Breckenridge, Keystone, and Crested Butte in Colorado; Heavenly, Northstar, and Kirkwood in the Lake Tahoe area; and Stowe, Mount Snow, and Okemo in Vermont.
