Industry News
Vail Resorts has announced the permanent closure of its Human Resources Shared Services unit in Broomfield, Colorado, eliminating 64 jobs as part of a two-year plan to improve efficiency and enable future growth. Layoffs will begin June 2 and impacted employees will be notified under the Worker Adjustment and Retraining Notification (WARN) Act.
The transformation plan, unveiled on September 26, 2024, follows a decade of rapid expansion that saw Vail Resorts grow from operating 10 resorts to 42 across four countries. The company’s workforce doubled during this period, alongside $2 billion in investments to enhance guest and employee experiences. However, the restructuring reflects a shift toward streamlining operations to achieve $100 million in annualized cost efficiencies by fiscal year 2026.
- Related: Vail Resorts Q2 2025 Results: Total Revenue Up $59 Million and Visitation Increased Over Last Year
CEO Kirsten Lynch described the initiative as a “natural progression” for the company as it prepares for its next phase of global expansion. “This team has led through many changes over the past 10 years as the company has grown and changed,” Lynch wrote in a letter to employees. “I am confident that the Transformation Plan is needed to set the company up for the next phase of growth in the future.”
The plan includes three key pillars:
- Scaled Operations: Implementing best practices across resorts to reduce administrative burdens while prioritizing guest experiences.
- Global Shared Services: Consolidating internal business functions such as payroll support and IT services into scalable service centers.
- Expanded Workforce Management: Enhancing workforce allocation tools to optimize staffing based on demand and give employees greater visibility into available shifts.
The closure of the HR unit aligns with broader efforts to consolidate internal business services and reduce redundancies. Overall, Vail Resorts plans to cut less than 2% of its workforce, with corporate roles facing a significant 14% reduction while frontline operational positions see minimal impact (0.2%).
Despite these cuts, Lynch reiterated the company’s commitment to creating an “Experience of a Lifetime” for employees and guests. Over the past two years, Vail Resorts invested $175 million annually in wage increases for seasonal and hourly workers—a move that underscored its focus on employee satisfaction during challenging times.
Last month, Vail Resorts reported strong second-quarter fiscal 2025 results, with net income rising to $245.5 million (up 12% year-over-year) and Resort EBITDA growing 8% to $459.7 million. Total lift revenue increased 6.9% to $644.9 million, driven by pass sales and non-pass visitation growth at Eastern U.S. resorts. However, the company faced significant headwinds from the 13-day Park City ski patrol strike in December 2024-January 2025, which caused operational chaos at one of its flagship resorts. The strike contributed to only 16-25% of terrain opening and three-hour lift lines. Vail’s shares fell 6.56% immediately after the strike began, resulting in a $375 million decline in stock value, compounding a broader stock slide that saw MTN shares drop from over $300 in 2021 to $177 during the crisis. The company now faces a class-action lawsuit alleging failure to warn guests about strike impacts, with plaintiffs seeking over $5 million in damages for spoiled $15,000+ ski vacations. The company has offered affected guests 2025-26 season credits.
- Related: Vail Resorts Named One of the Most Trustworthy Companies in America for 3rd Consecutive Year
Industry analysts suggest Vail Resorts’ workforce reduction could set a precedent for other operators facing similar challenges, such as climate uncertainties and evolving consumer preferences. While competitors may follow suit with cost-cutting measures, some smaller resorts could opt for contrasting strategies that prioritize staff retention and personalized service to differentiate themselves from efficiency-driven models like Vail’s.
As Vail Resorts begins these changes, Lynch expressed gratitude for employees’ dedication through periods of growth and transition: “I have tremendous gratitude for your passion and commitment to our mission, our mountains, and our guests.”
