US-based mountain resort company Vail Resorts has announced widespread furloughs and salary reductions for its employees due to the impact of COVID-19 on its business.
In a letter, CEO Rob Katz stated that the company is furloughing nearly all of its year-round hourly employees in the US for at least one to two months and is implementing a six-month pay reduction for salaried employees.
Katz said that salaried employees in the US will take 5% to 25% pay cuts for six months based on their pay grades, with 25% salary reduction announced for senior executives.
Vail Resorts CEO added that he will forfeit 100% of his salary and the company will also pause payments for the board of directors over the next six months.
The company will reduce between $80m and $85m in capital expenditures that would have been used for mountain improvements, including new lifts and terrain expansions.
Katz wrote: “This is one of the most challenging times many of us can remember, and it is disappointing to announce these changes, especially those impacting our employees.
“However, we also recognise that the impacts of the current crisis have certainly hit the travel industry and our Company quite hard. We believe that the actions we are announcing today will allow the Company to maintain cushion on our liquidity and financial covenants under our credit facilities through the upcoming quarters and position the Company for success in the future.
“I am evermore grateful for the commitment and loyalty of our employees, guests and community members during this challenging time.”