REI is laying off over 400 employees as it closes its Experiences division, which offered outdoor activity courses.
The company said about 180 full-time and 248 part-time workers will be affected. REI’s CEO, Eric Artz, explained that despite their best efforts, the division was unprofitable. In fact, it only served around 40,000 customers last year, which is a tiny fraction of their total customer base.
Even during its best year in 2019, the division didn’t turn a profit. Full-time employees will get their regular pay through March 9 and keep their benefits until the end of March. Part-timers will have benefits until the end of January.
Artz reassured the staff that this decision wasn’t a reflection of their hard work. He praised them for their dedication and the positive experiences they created for many customers.
For those who booked classes, REI will issue full refunds and is winding down contracts with travel partners. While the Experiences division is closing, REI plans to keep investing in outdoor education with a smaller team in the future. They have over 190 stores across the country, including six in New York.
