REI Lays Off 357 Employees in Challenges of a Tough Year

The layoffs will mainly affect 200 people at headquarters, six in sales and customer support, 30 in experiences (classes and trips), and 121 in distribution centers. 

However, employees working in the company's stores will not be impacted. Artz assured that all affected employees would receive separation benefits, including severance, COBRA, and outplacement support. 

The decision to lay off employees was driven primarily by financial necessity, with a strategic assessment of team structures aligning to business requirements also considered. 

The company has announced that it will not hire replacements for recently departed leaders and will instead adjust its senior leadership team to better suit the needs of the business. In total, the company plans to reduce the size of its senior leadership team by 22% in 2024.

Artz explained that the layoffs are a response to the significant downturn in the outdoor specialty retail industry over the past four quarters, which shows no signs of improvement. Despite outperforming this trend for most of the previous year, the company experienced the negative effects in Q4 and expects challenging conditions to persist throughout 2024. 

Due to projected challenges in the coming year, the company foresees a decrease in revenue for 2024 compared to 2023. As a result, REI is making necessary adjustments to its plans and cost structure.

In light of worsening economic conditions in previous years, REI made the difficult decision to lay off over 160 employees in February 2023. This action was taken to navigate the challenges faced by the business at the time. 

About REI (Recreational Equipment, Inc)

Image via flickr / SA for Steve B.

 Recreational Equipment, Inc., known as REI is a popular American retail company and outdoor recreation services corporation. It operates as a consumers' co-operative, offering a wide range of products including camping gear, hiking and climbing equipment, cycling gear, water sports gear, running and fitness gear, snow gear, travel equipment, and clothing for men, women, and children.

With 85 years of experience in the outdoor industry, REI was established in 1938 by a group of 23 friends who shared a passion for outdoor activities. Their goal was to provide high-quality and affordable gear for outdoor enthusiasts.

As of now, REI boasts a community of 23 million lifetime members and employs over 16,000 people. The company has 181 retail locations spread across 41 states and the District of Columbia.