A whole lot of REI staff misplaced their jobs this week, as the corporate introduced layoffs in anticipation of decrease gross sales in 2024. In a Thursday letter posted on the REI web site, CEO Eric Artz defined that the out of doors specialty retail phase had declined all through 2023. Because of this, firm leaders count on that “the approaching days are going to be robust,” Artz wrote.
To take care of the shortfall, REI will lay off 357 staff, together with 200 folks at headquarters, 121 in distribution facilities, and 30 from groups that deal with REI Expertise courses and occasions. The announcement comes simply weeks after REI stated it deliberate to open 11 new co-ops all through the nation in 2024 and 2025.
Not one of the affected staff had been a part of the corporate’s rising variety of unionized staff, The Seattle Occasions reported.
“As a cooperative, we’ve got each the privilege and the deep accountability to suppose long term, about generations, not simply quarters. We are able to—and should—get via this second as a result of the world wants a wholesome REI,” Artz wrote. “Our work is vital, and REI makes the world higher.”
Out of doors Recreation Continues to Develop
The announcement additionally comes only a few months after REI laid off 275 staff in an October “restructuring initiative.” REI Union, which now represents staff in eight of the corporate’s shops, known as these “ill-conceived modifications” that underscore the significance of union illustration.
“No matter union standing, REI needs to be accountable at all the shops that confronted these callous layoffs. All inexperienced vests deserve respect for the worth we convey to the corporate,” REI Union stated in a press release.
The out of doors recreation business general continues to develop, reaching $1.1 trillion, in keeping with a federal report launched on the finish of 2023. However particular segments haven’t been capable of keep the momentum. As of December 2023, out of doors specialty gross sales had been down 1% at $4.6 billion, The Each day Out of doors Retailer reported.
However it’s nonetheless not a depressing outlook general. The out of doors gear market will possible expertise a 6% progress fee from 2024 to 2028, in keeping with Statista.
Regardless, Artz stated that REI’s newest spherical of layoffs had been a monetary necessity. “The yr forward would require us to make strategic and intentional selections to regulate the issues that we are able to,” he wrote. “Many of those selections will probably be tough. And they’re what we should do to make sure the Co-op is wholesome for the long-term.”
Neither REI nor REI Union might be reached for touch upon Friday.
