HPP: In an effort to abolish a business division, REI, a significant local organization, announced intentions on Wednesday to lay off more than 400 workers.
The “Experiences” division, which employed 180 full-time employees and 248 part-time guides, will be closing. This section provided a range of lectures, day trips, and adventure travel.
Through the firm website, CEO Eric Artz disseminated a letter to staff members that had already been delivered to every employee.
“I have an important update to share today. Earlier this morning we shared with our Experiences team that after a thorough review and careful consideration, I have made the difficult decision to exit the Experiences business altogether, effective this week,” Artz stated.
“The reality is a thriving co-op requires a sustainable economic model that is capable of investing at the appropriate level to fully fund our most critical strategic ambitions.”
According to Artz, the Experiences sector has been losing a lot of money because its operational expenses are far higher than its revenue. Artz claims that in an attempt to maintain the division, REI is losing millions of dollars annually.
Even though 2019 was the Experiences division’s best year, it still failed to make a profit, which strengthened the company’s decision to close it.
Founded in 1938 in Seattle, REI is currently headquartered in Issaquah, which is on the state’s east side. In closing the division and terminating the impacted employees, Artz said the company will be one step closer to its objective of “sustainable, profitable growth.”
The business also described how it will assist the impacted staff members. Benefits will remain in effect until the end of March, and full-time employees affected by the layoffs will continue to earn their full pay until March 9.
Conversely, part-time workers will be eligible for severance pay and will continue to receive benefits through the end of January.
From Letters to Leads: Police Chief Unveils New Kidnapping Cases Linked to ‘Gone Girl’ Suspect
After the layoffs were announced, a statement was released by the United Food and Commercial Workers International Union (UFCW), which represents a number of REI employees.
“REI’s decision to lay off hundreds of valuable employees who provide our customers with experienced expertise, tours and classes is just more evidence that the company has moved away from its Co-Op roots. REI Management is putting profits over the very employees who make the company a leader in the industry,” Joe Mizrahi, the secretary treasurer for UFCW 3000 stated.
REI has guaranteed that clients who have already made reservations for programs or vacations through the Experiences division will get a complete reimbursement for any money paid.
This is not the first layoff announcement REI has made in recent years. Over 300 workers were let go by the corporation in January 2024, while 167 people lost their employment in a subsequent round of layoffs earlier in 2023.