REI Co-op announced Wednesday it will discontinue its Experiences business, which includes adventure travel, day tours, and classes, according to a message from REI President and CEO Eric Artz to employees.
The move will eliminate 180 full-time positions and 248 part-time guide roles.
Artz explained in his message that the Experiences division has not been profitable, even in its most successful year.
“When we look at the all-up costs of running this business, including costs like marketing and technology, we are losing millions of dollars every year and subsidizing Experiences with profits from other parts of the business,” Artz wrote.
Despite serving 40,000 customers in 2024, the program accounts for less than 0.4% of the co-op’s total customer base.
Artz emphasized that the decision was not a reflection of the Experiences team’s performance.
“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. Perhaps most importantly, I want you to know from me that you have done nothing wrong when it comes to the choice I am sharing today.”
The company will be notifying customers and partners impacted by the decision. Customers with existing bookings will receive full refunds, and the company will attempt to address any non-refundable expenses.
The move is part of a larger strategy to focus on the company’s core business and improve financial stability.
Artz stated that despite financial improvements in 2024, “we still have more work to do to return the co-op to sustainable, profitable growth.”
REI will redirect resources to key areas, such as growing sales in priority product categories, like camping, running, and hiking gear. The company also plans to invest in inventory management and enhance online and in-store customer experiences.
Full-time employees whose jobs are eliminated will continue to receive their regular pay through March 9, 2025, and their benefits through March.
They will also be eligible for severance, healthcare continuation, and outplacement assistance.
Part-time employees will maintain benefits through January 2025 and receive severance payments. All impacted employees will receive a Summit payout for 2024.
REI will also continue investing in community engagement but will rework how outdoor education and classes are delivered.
They will fund a small team to innovate and test a new approach. According to the company, local marketing teams will be combined with the marketing organization to unify customer-facing work.
The company plans to share more about its long-term plan next month.
REI, based near Seattle, is the nation’s largest consumer co-op with 24 million members.
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