Out of doors attire chain REI Co-op introduced it’s shedding greater than 400 staffers because it shuts down its complete “Experiences” division, which supplied low-cost, entry-level mountaineering and exercise programs.
Some 180 full-time staff and 248 part-time ones will lose their jobs as REI shifts to deal with its core retail enterprise, the corporate stated.
“We’ve held out as long as possible, but the fact remains that Experiences is an unprofitable business for the co-op, and we must adjust course,” Eric Artz, REI’s chief government, stated in an announcement.
“Experiences” supplied inexpensive courses for rookies on tenting, mountaineering, climbing, biking, snowsports and watersports within the hopes that clients would benefit from the exercise and return to REI shops to buy any vital gear.
However the division was a drain on REI’s enterprise. It served simply 40,000 clients in 2024 – lower than 0.4% of all co-op clients, in accordance with the CEO. And it price considerably extra to run than it introduced in, Artz added.
Even at its peak in 2019, which was the division’s greatest yr in firm historical past, “Experiences” didn’t generate a revenue, Artz stated.
Full-time staff affected by the shutdown will obtain their common wage via March 9 and stay energetic on advantages via the top of March. They are going to be eligible for severance pay.
Half-time staff will stay energetic on advantages via the top of January, and also will be eligible for severance.
Artz emphasised that the “Experiences” closure was a enterprise determination, and never a mirrored image of the affected staffers’ work.
“You have done what has been asked of you, you have worked extremely hard, you have brilliantly educated and created wonderful experiences for nearly one million people over those years,” Artz stated in an announcement. “I want you to know from me that you have done nothing wrong when it comes to the choice I am sharing today.”
Clients who’ve booked “Experiences” courses and journeys will get full refunds. The corporate stated it additionally plans to wind down contracts with journey companions who had collaborated on “Experiences” packages.
The chief government stated REI remains to be dedicated to outside schooling, and can be funding a small group to “innovate and test in this area in 2025.”
There are greater than 190 REI shops throughout 43 states and Washington, DC, together with six storefronts in New York, in accordance with the corporate’s web site.
