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Outdoor retailer Recreational Equipment, Inc. (REI) has laid off 357 employees, according to a message CEO Eric Artz shared with employees.
REI announced the layoffs Thursday, detailing that 200 jobs will be affected at its headquarters near Seattle, six in sales and customer service, 30 in the experience department and 121 in distribution centers.
“Decisions like this, which have a real impact on people’s lives and livelihoods, are among the most difficult I have had to make as CEO,” Ertz said in a message to those affected.
Artz went on to say that the decision was “primarily driven by economic necessity” and that the affected roles no longer have jobs or are redundant.
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Recreational Equipment Incorporated’s storefront displays the company’s logo. (Don and Melinda Crawford/UCG/Universal Images Group via Getty Images/Getty Images)
Employees who lost their jobs were informed by their leaders in one-on-one conversations. They will receive retirement benefits, continued health insurance, and outplacement services.
This year, REI will not be funding performance improvements for people working at its headquarters, including leaders. Artz said the company will reduce the size of its senior leadership team by 22% heading into 2024.
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A customer enters a Recreational Equipment Inc. store in New York’s SoHo neighborhood on Monday, December 14, 2020. (Gabby Jones/Bloomberg via Getty Images/Getty Images)
“As you know, business conditions and the conditions in our industry have become increasingly difficult and highly publicized,” Ertz said. “Outdoor specialty retail has experienced four quarters of decline, and the trend is getting worse.While we were able to outperform this trend for much of last year, we caught up in the fourth quarter. We predict that the situation will continue to be extremely difficult.” 2024. ”
Two weeks before the layoffs were announced, REI announced in a press release that it plans to open 10 new stores this year “to better serve our members and the outdoor community.” These stores offer apparel, gear and expertise for camping, cycling, running, fitness, hiking, mountaineering, a full-service bike shop and more.
REI announced 357 layoffs on January 25, 2024. (Robert Alexander, via Getty Images/Getty Images)
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“Each of these communities offers easy access, as well as proximity to iconic national parks where REI currently guides active adventures,” Mary Farrell Tarbox, REI vice president of stores, said in a release. There are plenty of places to play in nature that are accessible.” “We look forward to serving as a welcoming resource for you through the expertise of our staff and our wide selection of products.As we do in every community in which we are based, we also Establishing nonprofit partnerships to support efforts to get more people outside.”
