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REI is closing its Experiences business, which includes adventure travel, day trips, classes and other events.
Consequently, the outdoor equipment retailer based in Seattle will be letting go of 428 workers, comprising 180 full-time employees and 248 part-time staff. These individuals were involved in REI's Experiences division, which provided a range of indoor and outdoor classes, skills training, and travel adventures.
On Wednesday, REI's CEO and President Eric Artz communicated the decision to all employees through a message.
"After a thorough review and careful consideration, I have made the difficult decision to exit the Experiences business altogether, effective this week," he said in the note posted online.
In the note, Artz expressed, "You have fulfilled all the tasks assigned to you, put in tremendous effort, and successfully educated and crafted amazing experiences for almost one million individuals throughout the years."
In 2024, the division catered to 40,000 customers, accounting for less than 0.4% of the total REI Co-op clientele. "It costs considerably more to operate than the revenue it generates," Artz stated.
"In reviewing the total expenses associated with operating this business, which encompass marketing and technology costs, it’s clear that we are incurring millions in losses annually while supporting Experiences with profits from other segments," he mentioned in the message. "We have prolonged this situation as much as we could, but the reality is that Experiences is not a profitable venture for the co-op, and we need to change our strategy."
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What will happen to the employees of REI Experiences who are being laid off?
All affected employees will receive a bonus for 2024, determined by their performance, and will have the opportunity to apply for other current and future positions within REI, according to Artz's message. He also provided detailed information regarding different employee levels:
- Full-time employees: Those whose jobs were eliminated will continue to get their regular salary through March 9, 2025, and get benefits through the end of March. "They will also be eligible to receive separation benefits including severance, healthcare coverage continuation via COBRA, and outplacement service support," the letter said.
- Shared employees: Those who split time between Experiences and stores were to meet with store managers about continued employment options.
- Part-time employees: Get benefits through January 2025 and will also be eligible for a severance payment.
