REI announced this week it will close its “Experiences” business, eliminating hundreds of jobs.
The Seattle-based outdoor adventure and apparel cooperative announced to its employees on Wednesday it would be shutting down the “Experiences” business, effectively cutting 438 positions.
The Experiences business included adventure travel, day tours and classes, according to a news release from the company.
Here’s what to know.
Why is REI eliminating its Experiences business?
According to a letter, the Experiences business served 40,000 REI customers last year, which is less than 0.4% of its co-op members.
“I want to acknowledge and extend my gratitude to the Experiences team for all they have done and accomplished over the 40 years of its existence,” REI President and CEO Eric Artz said.
The 180 full-time Experiences employees and 248 guides will still receive salaries through March, along with severance pay and health care. Part-time employees will continue to receive benefits through January and be eligible for severance. REI will also be offering additional help finding other employment.
“While we are still in the process of finalizing 2024 results, our preliminary financials indicate we will be close to breakeven,” Artz said.
The CEO added that although the 2024 results were an improvement on their 2023 numbers, the company’s profitability still needed work.
What does this mean for REI?
REI was founded in 1938 and is a member owned co-op that currently has more than 180 stores nationwide, with nine locations in Oregon.
Although the Experiences division of the store will no longer exist, REI stores will remain open.
Ginnie Sandoval is the Oregon Connect reporter for the Statesman Journal. Sandoval can be reached at GSandoval@gannett.com or on X at @GinnieSandoval.
This article originally appeared on Salem Statesman Journal: REI is laying off 438 workers and closing Experiences business