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REI is shutting down its Experiences division, which encompasses adventure travel, day outings, classes, and other activities.
Consequently, the outdoor gear retailer based in Seattle will terminate 428 positions – 180 full-time and 248 part-time employees – who supported the development of REI’s Experiences division, which provided indoor and outdoor classes, skills training, and travel adventures.
In a message to all employees on Wednesday, REI CEO and President Eric Artz disclosed the decision.
“Following a comprehensive review and thoughtful evaluation, I have made the challenging choice to completely exit the Experiences business, effective this week,” he stated in the announcement shared online.
Experiences employees “have fulfilled all expectations, you have exerted immense effort, you have excellently educated and curated amazing experiences for nearly one million individuals over the years,” Artz remarked in the announcement.
The division catered to 40,000 clients in 2024, accounting for less than 0.4% of all REI Co-op customers, “and incurs substantially higher operational costs than it generates,” Artz mentioned.
“When we assess the total expenses of operating this division, including expenses related to marketing and technology, we are incurring millions in losses every year and covering Experiences with profits from other segments of the business,” he expressed in the announcement. “We have postponed this decision for as long as we could, but the reality is that Experiences is an unprofitable segment for the co-op, and we must change direction.”
What will happen to the REI Experiences employees who are being let go?
All affected employees will receive a bonus payout for 2024 based on their performance and will qualify for other (and future) REI job opportunities, Artz mentioned in the message. He elaborated on details for different employee tiers:
- Full-time employees: Those whose positions are being eliminated will continue to receive their normal pay until March 9, 2025, and will maintain benefits until the end of March. “They will also qualify for severance benefits including termination pay, ongoing healthcare coverage through COBRA, and career transition service support,” the letter stated.
- Shared employees: Individuals who divide their time between Experiences and stores will have discussions with store managers about available employment options.
- Part-time employees: Will retain benefits through January 2025 and will also be qualified for severance compensation.
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This page was generated automatically; to view the article in its initial location, you may visit the link below:
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