Industry News
Vail Resorts, the world’s largest mountain resort operator, announced significant job cuts as part of a two-year transformation plan to improve efficiency and enable future growth. The company will cut 14% of its corporate staff and less than 1% of its operations workforce, impacting less than 2% of its employees. In a letter to employees, Lynch stated, “A portion of the cost efficiencies are from position eliminations. No matter how big or small the impact of position eliminations, we do not take lightly any decision that affects our team members.”
The plan, unveiled on September 26, comes after a decade of rapid expansion that saw Vail Resorts grow from 10 to 42 owned and operated mountain resorts across four countries. CEO Kirsten Lynch emphasized that this move is a “natural progression” for the company, paving the way for the next phase of growth and global expansion.
“We believe this is a natural progression and next step for our company, that builds upon our success and paves the way for the next phase of growth. Our mission: to create an Experience of a Lifetime for our employees and our guests, galvanizes our company, as does our commitment to reinvesting for growth.”
– Kristen Lynch
The transformation initiative focuses on three key areas: scaled operations, global shared services, and expanded workforce management. Through these measures, Vail Resorts expects to achieve $100 million in annualized cost efficiencies by the end of its 2026 fiscal year.
Despite the job cuts, Lynch stressed that the company remains committed to creating an “Experience of a Lifetime” for employees and guests. The impact on frontline roles will be minimal, with only 0.2% of these positions affected.
“Again, the Transformation Plan outlined above is a natural progression and next step for a company that has grown rapidly through many acquisitions. It builds upon our success and paves the way for the next phase of growth. At the center of this plan, and anything we do, is our mission to create an Experience of a Lifetime, our core values, and our continued investment in the employee and guest experience.
This team – all of you – have led through many changes over the past 10 years as the company has grown and changed. All of what you have accomplished has gotten us here, to this point. And I am confident that the Transformation Plan is what is needed to set the company up for the next phase of growth in the future.
I have tremendous gratitude for your passion and commitment to our mission, our mountains, and our guests. Thank you. I know you are all working tirelessly to welcome skiers and riders back to the mountains this season (or have just finished the winter season if you are in Australia).”
– Kirsten Lynch employee letter
The announcement comes as Vail Resorts reported a $175.4 million loss in its fourth quarter, primarily due to unfavorable weather conditions and a decline in skier visitation. The company saw a 9.5% decrease in overall skier visits compared to the previous year, with particularly challenging conditions in its Australian resorts.
Vail Resorts’ workforce reduction may set a precedent in the ski industry, potentially triggering a wave of cost-cutting measures among competitors. As the sector faces climate uncertainties and evolving consumer preferences, smaller operators might feel compelled to streamline their operations similarly. However, this shift could also create opportunities for resorts to stand out by prioritizing staff retention and personalized service, offering a contrasting approach to Vail’s efficiency-driven strategy.
