REI is closing its Experiences business, which includes adventure travel, day trips, classes and other events.
As a result, the Seattle-based outdoor gear retailer will lay off 428 employees – 180 full-time and 248 part-time staffers – who had helped conduct REI’s Experiences business, which offered indoor and outdoor classes, skills instruction and travel excursions.
REI CEO and President Eric Artz told all employees about the move in a message on Wednesday.
“After a thorough review and careful consideration, I have made the difficult decision 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 hard, 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 possible, but the fact remains that Experiences is an unprofitable business for the co-op, and we must adjust course.”
All impacted employees will get a bonus payout for 2024, based on performance, and are eligible for other (and future) REI jobs, Artz said in the message. He added these specifics for various employee levels:
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