The snow came a couple months too late to [R227R, Mammoth Mountain] forcing the resort to make drastic cuts. According to a memo sent to several employees last Wednesday, skier visits were down 33 percent below budgets this year and revenue was down 29 percent.
The mountain was forced to layoff 75 of their 359 full-time employees. The employees let go weren’t just lower-level employees. Two of those layoffs were VPs who worked at the resort for the past 45 and 40 years.
Many of the other employees laid off were from Information technology (IT), sales and other administrative positions. The remaining employees took a 10-percent pay cut, and Gregory gave himself a 15-percent pay cut.
MMSA Chief Executive Officer, Rusty Gregory, told the Mammoth Times, “We simply don’t have the money . . . 55 inches of snow came by mid-January, but so did 80-degree temperatures in Southern California. Skiers and riders returned, but not in the numbers we needed. Simply put, the company is not bringing in enough money to pay the wages for the number of people we currently employ.”
The layoffs prevented the company from defaulting on their bank loans. A default would allow the bank to come in and run the company.
“It’s heart-breaking. I shed a lot of tears over this. We’re a huge company in a small town. We live with each other. We are each other’s friends. Our children go to school together. This isn’t like a layoff in a big city. As difficult as it is on me, it’s a thousand times more difficult for those who have lost their jobs,” Gregory told Mammoth Times on Thursday.
In 1991, the CEO (Gregory) was also forced to let go of 150 employees on one day. Many of those employees were able to come back at the same level of salary and benefits.
The company will rehire employees in seasonal positions if they are willing and able, and are doing their best to assist employees in finding and applying for new jobs and applying for unemployment benefits.