REI has decided to close its Experiences business, leading to the layoff of 428 employees, including both full-time and part-time staff.
The division, which focused on adventure travel and educational classes, served only a small fraction of REI’s total customer base, resulting in significant financial losses.
CEO Eric Artz highlighted the difficulties of the decision while praising the hard work and dedication of the Experiences team over the years.
The financial unsustainability of the Experiences business necessitated a strategic shift for REI, diverting resources towards more profitable areas of the company.
REI CEO and President Eric Artz shared “When we look at the all-up costs of running this business, including costs like marketing and technology, we are losingms of dollars every year and subsidizing Experiences with profits from other parts of the business,” he said in the note. “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.
