REI cuts dozens of people, popular programs to cure money woes
Jan 8, 2025, 10:35 AM | Updated: 1:35 pm
REI Seattle flagship store on October 27, 2015 in Seattle, Washington. (File photo: Suzi Pratt, Getty Images for REI)
(File photo: Suzi Pratt, Getty Images for REI)
Issaquah-based co-op REI is laying off dozens of workers and shutting down popular programs to stabilize the company’s finances. The company will be close to just breaking even this year after losing $311 million in 2023. It saw financial growth in December.
“The reality is a thriving co-op requires a sustainable economic model that is capable of investing at the appropriate level to fully fund our most critical strategic ambitions,” CEO Eric Artz said in a note posted on the company’s website.
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REI said it will lay off 180 full-time and 248 part-time employees, including 67 in Washington. According to the company, 16,000 people work for REI. Full-time employees who are laid off will get their full salary and benefits on March 9.
The company will also end its “Experiences” division, which includes outdoor classes, events, and tours this month. They were a core part of REI’s appeal. The company said they were unprofitable, requiring resources from other parts of the company.
“Experiences served 40,000 customers in 2024 — less than 0.4% of all co-op customers — and costs significantly more to run than it brings in,” Artz said in his note. “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. Even at our peak in 2019 — our best year for Experiences ever — we did not generate a profit.”
“It’s unfortunate. I love REI. I think the people who work there love being there. But I also understand if they’re not making money, they have to turn it around,” REI member John Barnes told KIRO Newsradio’s James Lynch.
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REI said it would refund all money to customers currently booked on trips and day programs.
Along with the layoffs, the company is limiting discounts and putting tighter controls on inventory to get it back on track.
“It’s not expected, but not a surprise,” REI member Ryan Tavitas said. “It seems the economy is kind of tough right now so I can see why it would be hard, but it still makes me sad to see it happening.”
Despite the bad news, Artz said he remains optimistic about the company’s future. REI plans to stabilize its financial footing by investing in technology for its online store and supply chain.
Camping and hiking gear, along with outdoor apparel, are REI’s biggest profit centers.
Bill Kaczaraba is a content editor at MyNorthwest. You can read his stories here. Follow Bill on X and email him here.
