Vail Resorts (NYSE: MTN) announced a two-year transformation plan aimed at positioning the company for future growth and global expansion after a decade of development. The Broomfield-based, global mountain resort operator has grown from 10 owned and operated resorts to 42 across four countries over the past 10 years, more than doubling its work force during this period.
The plan, named the Resource Efficiency Transformation Plan, seeks to improve organizational effectiveness and leverage operating scale as the company continues to expand. Vail Resorts anticipates achieving $100 million in annualized cost efficiencies by the end of its 2026 fiscal year through enhanced scaled operations, global shared services and improved work force management. “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,” said Vail Resorts CEO Kirsten Lynch.
The plan includes position eliminations affecting less than 2% of the total work force, impacting 14% of the corporate staff and less than 1% of employees in operations. The changes primarily focus on management structure and back-end support staff, with a minimal effect on frontline roles. Employees who are impacted will have the opportunity to apply for open positions within the company.
“No matter how big or small the impact of position eliminations, we do not take lightly any decision that affects our team members,” Lynch said. “Our team members are the core of our mission to create an Experience of a Lifetime, and we have tremendous gratitude for their passion and commitment to our mission, our mountains, and our guests.”
The Transformation Plan features three key pillars: Scaled Operations, Global Shared Services, and Expanded Workforce Management. The Scaled Operations initiative aims to leverage best practices developed across the company’s 42 resorts to enhance guest experience and reduce administrative burdens. The Global Shared Services component will consolidate and outsource internal business services into a more efficient model supporting North American operations and future global expansion. Lastly, the Expanded Workforce Management approach intends to enhance the company’s use of technology to better allocate talent and shift management across resorts.