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REI Announces Mass Layoffs and an End to a Beloved Program
After almost 40 years of offering adventure travel, day tours, and classes, REI Co-op is shutting down its Experiences business. The move, announced on January 8, 2025, will result in the layoff of 428 employees, including 180 full-time staff and 248 part-time guides.
An REI in Brentwood, MO. Image: KOIN
Eric Artz, REI’s CEO, explained that while the Experiences division had been a part of the co-op’s offerings since 1987, it had ultimately proven unprofitable. “We’ve subsidized this business for 40 years, but now, based upon where the marketplace is, we feel like it’s time to redeploy those losses into the core business,” Artz said in a statement to employees.
In 2024, the Experiences division served just 40,000 customers, less than 0.4% of REI’s total customer base. Despite this, the division continued to lose money, prompting the decision to focus on the company’s more profitable areas. Artz confirmed that REI plans to invest more heavily in its core activities, such as camping, backpacking, running, hiking, and outdoor life.
Full-time employees affected by the closure will continue to receive their regular pay through March 9, 2025, with benefits available through the end of March. They will also be eligible for severance, healthcare coverage via COBRA, and outplacement support. Part-time employees will have benefits through January and receive severance payments.
For customers with current bookings, REI will provide full refunds, and the company will work with its travel partners to terminate contracts.
The decision to shut down Experiences aligns with REI’s goal to create a more sustainable, profitable model. According to Artz, the co-op made significant improvements in 2024, focusing on increasing full-price sales and managing inventory effectively. “We’re on a journey, and we took a big step forward in 2024,” he said, indicating that REI is working towards a “durable economic model” moving forward.
While Experiences is ending, Artz emphasized that REI remains committed to outdoor education, with plans to reassess how classes and educational programs are delivered. A small team will be funded to test new ideas and ensure the company’s offerings remain relevant and financially viable.
REI had previously offered guided trips and classes at a relatively affordable price point compared to competitors. Photo: REI
This latest closure follows a series of changes at REI, including the exit from its branded footwear business in April 2024. Despite these adjustments, Artz assured employees and customers that no further major exits are expected. “We need to continue to adapt, adjust, be agile, be resilient, and keep looking at what’s driving value for the customer,” he said.
REI has already begun informing customers and partners about the closure and will continue to update them in the coming days.
The layoffs and business changes mark another chapter in REI’s ongoing efforts to adapt to the evolving retail landscape, ensuring its long-term sustainability as a leader in outdoor gear and experiences.
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Comments 35
REI prices are so exsorbitant, that im not surprised. Ive walked into the one in phoenix on many occasions and had workers look right through me, because i wasnt dressed a certian way. Its discusting. I thought to myself, these are going to pay for the way they treat customers in here. You need to make things more affordable for avid hikers and outdoor people. Good quality is getting easier to find, for better prices. I appreciate the reality check. Wow…
I frequently visit the REI stores in Reading, MA and Richmond, VA.
I find the employees to be very customer friendly
Perhaps you encountered one employee on
a bad day.
No, ive been going to this REI here for 3 years, often. Its always the same. And, ive been shopping at REI since i was 20’s. Im 60 now. Im an avid outdoors person. Im not suprised theyre having problems at all…. theyre employees have gotten spoiled, and lazy.
Typical boomer comment lol
What a typical loser statement.
What may surprise you is a quick Google of “REI’s DEI Investments”.
It seems paying millions to the communist cultures doesn’t exempt the Woke frome Going broke. Good riddance!
Curious if you also read the part where that program has generated &1 billion in sales? Are you against DEI programs in principle– even at the detriment to the economy? That is an interesting perspective to take.
Yes I read the article, and it seems that detriment was their own by giving the people what they didn’t want by shoving a bunch of nonsense and pride flags down the throats of the patrons. Maybe if they had a Cotopaxi “tuckable” onesie for infants they could generate more money to bring back the purple haired hippies. The interesting part is how the company officers push their agendas to a detriment of the company and manage to still have jobs. It’s not an REI problem, it’s everywhere. It’s not for the people, it’s for their ideology.
Again, curious about that take. You say “giving the people what they didn’t want”, but still fail to acknowledge the $1 billion in revenue brought in. Almost by definition, that shows that the products were things that people wanted. Maybe you need to take a few deep breaths and approach this topic with a little less emotion clouding your opinions!
Katie, one Billion, really isnt that much to me. Especially, if we consider how long REI has been around., and how much things cost there. Trump won the election, because 78 million people, are sick and tired, of being having shoved on us. Its true, that person is right. Watch, and wait. REI, is going under.
I’ve encountered amazing employees at REI, at the Portland, OR, Rochester, NY, Washington, DC, San Francisco, CA, and Boca Raton, FL stores.
In any organization, 80% of work is done by 20% of employees.
I’ll be boycotting REI because it’s no longer the alternative retailer it once was. It’s a bean counter, exploit the workers, Big Business with anti worker policies. Management has engaged in union busting tactics which would have raised wages and worker morale, but under capitalism we aren’t allowed to do so.
On the other hand, including employees in the profits and ownership of the corporation, as is done in collectives like Fat Tire Brewing, improves both employee morale, retention, and productivity.
Minimum wage hasn’t changed since 2009, and is $7.25 an hour. It’s a national disgrace. The average rent for the USA is $1554 per month.
Eric Artz, CEO for REI received $4,563,312 and Ben Steele, Executive Vuce President received $1,739,822.
Yep. Been a member for 20 years. I’m b really starting to rethink it.
An absurdly shortsighted manuever. The Experiences represents a kind of loss leader bringing many more curious people thru the door, and prompting more frequent visits by members like myself. The cancellation is going to aggravate many. But it is one in a series of boneheaded moves by the company, including its deal with the churlish, fraudulent CapitalNone credit card, and permanent presence of products by Cotapaxi (meaning, in ancient Incan, “expensive flippin’ clothing”).
Experiences brought virtually NO people thru the door.
Get woke go broke
I have been an REI remember since roughly nineteen eighty, but haven’t been in this store for years. Their corporate mentality of anti-america, anti constitution bullshid has driven me and many other loyal members very far away. On top of their super ridiculous pricing and chinese level quality, there is no reason to ever set foot in this store ever again. Die in a fire REI. We will mourn what you were, but not what you are….
It seems logical to me that if a CEO says a side of their business has been unprofitable for 40 years, it seems they ‘slept’ on REI Experiences for far too long. I think it’s a good thing they finally woke up and stopped coddling what was a drain on their business.
“We’ve subsidized this business for 40 years, but now, based upon where the marketplace is, we feel like it’s time to redeploy those losses into the core business,”
I too am a long time member
I go in stores and appreciate the hi- end merchandise
Perhaps you don’t care that there are actually physical stores you can go to
I am also a long time member
And I am will to pay the upscale merchandise
It’s the price to keep the stores open
Too soon.
Not THIS stupid shite again . . . *sigh* Please name one “anti-constitution” or “anti-america” thing that REI has ever done. And, no, a non-government corporation encouraging members of the non-white/non-male/non-heterosexual community to fully enjoy the outdoors is neither un-American, nor in violation of the U.S. Constitution.
I haven’t shopped at REI since their massive union busting campaigns and refusal to negotiate on good faith with their unionized staff at the marque NYC location because I refuse to cross the picket line. There are many things more important than profits in the world, EFF late stage capitalism.
No surprise to me and shouldn’t be a surprise to anyone else. after reading these comments all I see is mass acceptance of AMAZON, WalMart and the like who have put businesses out. Atleast REI tried and couldn’t keep up; the more interesting fact is their return policy wasn’t mentioned. Allowing your custmers return policies for up to a year even after using a product and then selling that product again as used should take an incredible hit to your bottom line. putting folks out on the streets who believe in something is terrible but then again closing thousands of stores across this country because of the likes of the afor mentioned monstrosities that sale the majority of chinese products and not see discuss is entirely something different. Way to go America as long as you get what you want at the price you want you can bash everyone else.
You nailed it
I suggest you move a nice non-capitalist country like North Korea.
There is no such thing as “late stage capitalism
REI initially impressed me with its exceptional customer service and high-quality products. However, over time, it seems to have shifted towards prioritizing gadgets and gizmos over genuine outdoor enthusiasts. This decline is evident in the decline in employee passion and the proliferation of cheap, poorly made gear. While it’s understandable that consumers have numerous options and YouTube videos to guide their purchases, investing in quality products from skilled craftsmen can be worthwhile despite their higher cost.
The old wisdom you get what you pay for truly mean something. Also, I think there’s a trend when you start seeing 30% off or sales every week seems to be the decline of the beast.
This is just a symptom of an overall trend to lazy customer service in big coorporate retail everywhere, not just rei. I try to shop local owned outfitters first.
Agreed. When I first started shopping there, employees were smart about the products and I could get clothes that were appropriate for my small frame but athletic build. Now, the knowledge base has declined sharply, not just at my home store but at the 5 different ones in three distinct areas of the country I have visited in the past 3 years. I know REI was never cheap, but clothing trends towards whatever the 2025 version of a yuppie is, an influencer, or someone who has all the goods on trail but none of the skills…very few things fit anymore, clothing and gear is uncomfortable and overpriced for what it is…spend the money on a good small company. I still buy my fuel there, though, because it’s convenient. Dividends are a joke now, but I do need to replace some socks. I miss the old days, for sure.
Not only are they removing excellent community building programs, but they cancelled 100+ NOLS courses to be hosted at REI’s around the country that had people signed up to instruct. NOLS isn’t doing too hot already. A very profit-centered move that negatively impact the industry as a whole.
Member since 1980. Started shopping their Pine St location then. The store started becoming too exclusive for it’s own good coinciding with Sally Jewel becoming the CEO. I now would rather walk over glass to go to a competitor than shop REI. This isn’t the only cutback, just the first.
They are ultimately a for profit business, a strore. They are not a social charity. As such, they constantly need to adapt strategies to stay open. I’m sad to see this program end, but am not too surprised given current economic market and declining margins.
Not to mention it is one less way for people to sue them. Too many frivolous lawsuits have an overall impact of closing opportunities out of fear of being sued. No one really wins but the attorneys with their high fees.
REI flagship SoHo management has removed all safety respirators for the ski shop techs. Techs have been on strike for over 30 days with NO movement from management for better working conditions and safety measures. Check out @reiunionsoho
3% of the workforce is a “mass layoff”? Trimming fat is a normal part of corporate efficiency and growth.
I’m surprised at the ghastly comments, and sorry some people are having a bad day.
This is super simple: Businesses need to make money, some operations do not, so they are closed to focus on what does. This is done hundreds of times every day by all businesses everywhere.
I’ve been pretty disappointed with REI in general lately. I tried to return a fleece I didn’t like waaay before the 1 year policy and they wouldn’t honor my completely valid request simply because I mentioned that I had used it to complete a thruhike of the AT. Nevermind that the item basically disintegrated.