‘Unprofitable’: REI shutters Experiences trip business, lays off 428 employees

REI is closing its Experiences business, which includes expedition trip, day trips, classes and other events.

As a outcome, the Seattle-based outdoor gear retailer will lay off 428 employees – 180 packed-period and 248 part-period staffers – who had helped conduct REI’s Experiences business, which offered indoor and outdoor classes, skills instruction and trip excursions.

REI CEO and President Eric Artz told all employees about the shift in a communication on Wednesday.

“After a thorough review and careful consideration, I have made the challenging selection to exit the Experiences business altogether, effective this week,” he said in the note posted online.

Experiences employees “have done what has been asked of you, you have worked extremely challenging, you have brilliantly educated and created wonderful experiences for nearly one million people over those years,” Artz said in the note.

The division served 40,000 customers in 2024, which was less than 0.4% of all the REI Co-op customers, “and costs significantly more to run than it brings in,” Artz said.

“When we look at the all-up costs of running this business, including costs like marketing and technology, we are losing millions of dollars every year and subsidizing Experiences with profits from other parts of the business,” he said in the note. “We’ve held out as long as feasible, but the truth remains that Experiences is an unprofitable business for the co-op, and we must adjust course.”

What happens to the REI Experiences employees being laid off?

All impacted employees will get a bonus payout for 2024, based on act, and are eligible for other (and upcoming) REI jobs, Artz said in the communication. He added these specifics for various employee levels:

• packed-period employees: Those whose jobs were eliminated will continue to get their regular salary through March 9, 2025, and get benefits through the complete of March. “They will also be eligible to receive separation benefits including severance, healthcare coverage continuation via COBRA, and outplacement service back,” the note said.
• Shared employees: Those who split period between Experiences and stores were to meet with store managers about continued employment options.
• Part-period employees: Get benefits through January 2025 and will also be eligible for a severance settlement.

pursue Mike Snider on Threads, Bluesky and X: mikegsnider &@mikegsnider.bsky.social &@mikesnider.

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