Vail Resorts Institutes Pay Cut, Furloughs, Defers Capital Projects
In an effort to reduce expenses over the coming months, Vail Resorts will furlough the majority of its U.S. year-round hourly employees and institute pay cuts for salaried employees. It will also significantly reduce capital expenditures planned for this summer. The moves stem from the uncertainty of when, or if, the company’s businesses will be able to reopen this summer as the impacts of the COVID-19 pandemic grow.
Two weeks ago, VR reported that the early closure of its North American resorts would cost the company at least $180 million to $200 million in lost profitability in its third quarter ending in April. VR’s May through October business, which accounts for 20 percent of the company’s revenue, is also expected to take a hit as the timeline to reopen businesses amid the pandemic continues to lengthen.