SEATTLE — Another 357 people will be laid off from REI as the company braces for revenue in 2024 to be down from 2023.
Those losing their jobs include 200 people at headquarters, 121 in distribution centers, 30 in experiences, and six in sales and customer services, according to a letter from CEO Eric Artz.
Artz explains that the layoffs were primarily driver by "financial necessity." Leadership also looked at work that either no longer exists, while also focusing on cutting down on "duplicative work, layers and hierarchy."
Every employee losing their job will receive separation benefits, including severance, COBRA and outplacement support and services, according to Artz.
Additionally, REI will not backfill the leadership roles being cut as the company reduces the size of its senior leadership team by 22%. The company will also not fund merit increases for headquarter employees, including leadership in 2024.
In his letter, Artz states that outdoor specialty retail has seen four quarters of revenue decline. REI outperformed for "much of" 2023, but the worsening market caught up to it in the fourth quarter. Artz said they expect market conditions to "remain challenging" through 2024.
"As a result, we are planning this year’s revenue to be down from 2023, reflecting the macroeconomic conditions we are expecting for 2024," Arts stated in his letter. "When we plan our revenues down, we must adjust our plans and cost structure accordingly. We must also continue our work to return REI to profitability to set the co-op up for long-term health and success."
These are the first layoffs for REI this year.
Last year, several hundred people lost their jobs as well. That included 167 jobs cut from corporate positions in early 2023, and another 275 employees in lead roles being cut in the fall of 2023. At the time, REI leadership also said it would implement a new staffing model that invested more into store roles and seasonal workers.
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