Outdoor apparel chain REI Co-op announced it is laying off more than 400 staffers as it shuts down its entire “Experiences” division, which offered low-cost, entry-level hiking and activity courses.
Some 180 full-time workers and 248 part-time ones will lose their jobs as REI shifts to focus on its core retail business, the company said.
“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,” Eric Artz, REI’s chief executive, said in a statement.
“Experiences” offered affordable classes for beginners on camping, hiking, climbing, cycling, snowsports and watersports in the hopes that customers would enjoy the activity and return to REI stores to purchase any necessary gear.
But the division was a drain on REI’s business. It served just 40,000 customers in 2024 – less than 0.4% of all co-op customers, according to the CEO. And it cost significantly more to run than it brought in, Artz added.
Even at its peak in 2019, which was the division’s best year in company history, “Experiences” did not generate a profit, Artz said.
Full-time employees affected by the shutdown will receive their regular salary through March 9 and remain active on benefits through the end of March. They will be eligible for severance pay.
Part-time employees will remain active on benefits through the end of January, and will also be eligible for severance.
Artz emphasized that the “Experiences” closure was a business decision, and not a reflection of the affected staffers’ work.
“You 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 a statement. “I want you to know from me that you have done nothing wrong when it comes to the choice I am sharing today.”
Customers who have booked “Experiences” classes and trips will get full refunds. The company said it also plans to wind down contracts with travel partners who had collaborated on “Experiences” packages.
The chief executive said REI is still committed to outdoor education, and will be funding a small team to “innovate and test in this area in 2025.”
There are more than 190 REI stores across 43 states and Washington, DC, including six storefronts in New York, according to the company’s website.