REI Shifts Focus Back to Its Roots Amid Division Closure and Job Cuts

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Seattle-based REI announced on Wednesday that it is closing its Experiences division and eliminating 438 jobs. This division, which included adventure travel, day tours, and classes, will close this week, according to a message from REI President and CEO Eric Artz. It is not yet known how many affected employees are in Washington. Artz explained that the decision was based on preliminary financial results showing the company was close to breaking even for 2024. Despite being a “significant improvement over 2023,” Artz noted that more work is needed to achieve profitability.

Artz expressed gratitude to the Experiences team for their contributions over the past 40 years and emphasized that the team had done nothing wrong. However, the division served only 40,000 customers in 2024, representing less than 0.4% of all co-op customers, and costs more to operate than it brings in. Artz stated that even at its peak in 2019, the division did not generate a profit.

The 180 full-time employees and 248 part-time guides in the division will receive their regular salary through early March and maintain their benefits through the end of March. They will also receive severance, healthcare via COBRA, and assistance in finding new jobs. Part-time employees will be eligible for severance and will keep their benefits through January. Options vary for workers who split their time between the Experiences division and stores.

Artz concluded by emphasizing the company’s focus on its core business of gear and apparel, which has been the foundation of REI for 86 years, and expressed confidence in the company’s ability to succeed by staying true to its strengths.