REI is shutting down its Experiences division, which encompasses adventure travel, day tours, classes, and other activities.

As a result, the Seattle-based outdoor retailer is laying off 428 team members – 180 full-time and 248 part-time employees – who supported the Experiences division, which provided both indoor and outdoor classes, skill workshops, and travel adventures.

Eric Artz, the CEO and President of REI, informed all employees about this significant decision in a message on Wednesday.

“Following a comprehensive review and careful thought, I have made the challenging decision to entirely exit the Experiences division, effective this week,” he stated in the note shared online.

In his message, Artz acknowledged the hard work of the Experiences team: “You have done everything required of you, worked tirelessly, and created wonderful experiences for nearly one million people throughout the years.”

In 2024, this segment served 40,000 customers, accounting for less than 0.4% of REI Co-op’s overall customer base, Artz explained, adding that the division’s operational costs far exceeded its revenue.

“After evaluating the total expenses for running this division, including marketing and technological costs, it’s clear we are losing millions of dollars annually and supporting Experiences financially with profits from other sectors of our business,” he continued. “We have held on as long as we could, but the reality is that Experiences is a financially unsustainable operation for the co-op, and we must change our direction.”

What support will be available for the REI Experiences employees laid off?

All affected team members will receive a bonus payout for 2024 based on their performance and are eligible for current or future job opportunities within REI, as mentioned by Artz in his message. He provided specific information for different employee categories:

• Full-time employees: Those whose positions are being terminated will continue to receive their regular salary until March 9, 2025, with benefits extended through the end of March. “They will also qualify for severance, continued healthcare coverage via COBRA, and assistance with job placement,” the letter explained.
• Shared employees: Those who divided their time between Experiences and retail will have discussions with store managers regarding their job options moving forward.
• Part-time employees: Will have benefits until January 2025 and will also qualify for a severance payout.