VAIL — On Thursday, Vail Resorts announced that is furloughing nearly all of its year-round hourly employees in the United States as of Saturday for at least one to two months.
The company is implementing six-month reductions of pay for salaried employees because of revenue reductions caused by the coronavirus.
Workers will be able to keep full health care coverage, as many high-country communities have been hit the hardest due to COVID-19.
In a letter from Vail Resorts CEO Rob Katz, he explained this a very difficult business decision.
“I recognize this is very disappointing news and I had hoped we would not have to take this action,” Katz said. “But with each passing week, the financial consequences have become more apparent. To our year-round hourly employees, I am so disappointed that the vast majority of you have not been able to work these past three weeks and I assure you we will end the furlough as soon as possible once we have clarity on our business reopening. To our year-round salaried employees, who are working from home — in many cases harder than ever — I truly am sorry to have to ask you to give even more by accepting a salary reduction. We are asking everyone to accept some sacrifice so that we weather this storm together and are ready to come back strong for next winter.”
In addition, Katz said he would forfeit 100% of his salary for the next six months, and cash compensations for members of the board will be eliminated for the same time period. Pay cuts for salaried employees will depend on their pay grade, and will range from 5% to 25%.