Important points
Vail Resorts has announced a “transformation plan” that includes a 14% reduction in its workforce. Chief executive Kirsten Lynch said the changes were a “natural progression” as the ski resort operator grows. Vail Resorts also reported an even larger loss in the fourth quarter.
Ski resort operator Vail Resorts (MTN) has announced a “transformation plan” that includes layoffs after a difficult year due to lack of snow and fewer visitors. The stock price fell as the company posted an even bigger loss in the fourth quarter.
Vail Resorts said it is launching a two-year plan to “transform the company for future growth and global expansion.” As part of that effort, Vail Resorts will cut 14% of its workforce and less than 1% of its operational positions. The total number of layoffs will be less than 2% of the workforce.
A move that “paves the way to the next stage of growth”
The company added that these measures are “aimed at improving organizational effectiveness and increasing operating leverage as the company grows.” CEO Kirsten Lynch said Vail Resorts is “a natural progression and next step for our company, building on our success and setting us on the path to our next stage of growth.” He added that he believes that “it will open up.”
The news comes after Vail Resorts reported a loss of $4.67 per share in the fourth quarter, which was 39% wider than a year ago, according to a survey by Visible Alpha. That was wider than analysts expected a loss of $4.20 per share.
The company blamed the poor performance primarily on the slump in its winter business in Australia, as snowfall in Australian resorts fell by 28% year-on-year.
Vail Resorts shares were down 4% Friday morning and are down about 15% this year.
TradingView
