REI axes 400+ jobs in outdoors trips and education

[Ear Drum]

This impacts things like trips to Grand Canyon and WFA courses. Personally, though I've been a member for years, I've never been on an REI trip or course (aside from some in-store stuff) - but I think folks who took them benefitted and enjoyed. As well, the guides and teachers were able to connect with clients through the national reach of REI. I hope these local guide services that were contracting with REI will be able to carry on without these trips.


Here's an article about it from Backpacker - https://www.backpacker.com/news-and-events/news/rei-closes-experience-program-lays-off-guides/

REI Closes Experiences Program, Will No Longer Offer Trips or Classes
After four decades of running outdoor adventure trips and educational courses, REI is eliminating more than 400 jobs to focus on its core retail business, the company’s CEO said on Wednesday.
Published Jan 8, 2025

... “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,” [REI CEO] Artz wrote. ...The closure of the department will eliminate 180 full-time employees and 248 part-time guides from the company, beginning this week. ...


From their local paper: https://www.seattletimes.com/busine...s-of-employees-axes-tour-and-events-business/

Struggling REI cuts hundreds of employees, axes tour and events business
Jan. 8, 2025

...Experiences have been a staple of REI for more than 40 years. But that side of the co-op has never been profitable. To keep it afloat, REI has had to use money from the retail side to subsidize Experiences, which loses millions of dollars every year.

REI has 25 million members, 8.5 million of whom purchased something from the co-op last year. Of those, just 40,000 went through an Experiences class or event....



From the REI site: https://www.rei.com/events

An Important Update About REI Experiences
REI has announced the closure of its Experiences division to prioritize the core retail business. REI Adventures, outdoor classes and day tours are no longer offered.
For additional information, please visit our FAQ page.



More from REI, from: https://www.rei.com/events/resources/faqs

"All outdoor classes, day tours, and REI Adventures trips are permanently canceled. REI Adventures and Wilderness First Aid courses in progress at the time of this announcement will continue through completion.
In-store programming will continue to be offered."

 

[KRooney]

EMS has made cutbacks in the past several months also. People have less disposable income. They'll have even less if new tariffs and taxes got into effect.

 

[sierra]

Retail stores are bleeding, and it will likely only get worse. I decided to get my dog a jacket, REI carries a brand I like. I stopped by as it's near my house, nothing but small sizes, very few hiking dogs wear small. I drove home, called up my Amazon app, jacket is on the way

 

[Ear Drum]

Retail stores are bleeding, and it will likely only get worse. I decided to get my dog a jacket, REI carries a brand I like. I stopped by as it's near my house, nothing but small sizes, very few hiking dogs wear small. I drove home, called up my Amazon app, jacket is on the way

It's mind boggling how Amazon operates - I was looking today at some slippers for around the house. Any model I looked it, in my size, could be delivered by tomorrow. And for not much money. Rough time to operate bricks and mortar shops.

 

[KRooney]

Amazon can have some amazingly short delivery times. Another good place to shop for foot ware is Zappos.

 

[BillyGr]

This impacts things like trips to Grand Canyon and WFA courses. Personally, though I've been a member for years, I've never been on an REI trip or course (aside from some in-store stuff) - but I think folks who took them benefitted and enjoyed. As well, the guides and teachers were able to connect with clients through the national reach of REI. I hope these local guide services that were contracting with REI will be able to carry on without these trips.

"All outdoor classes, day tours, and REI Adventures trips are permanently canceled. REI Adventures and Wilderness First Aid courses in progress at the time of this announcement will continue through completion.
In-store programming will continue to be offered."

Seems kind of odd that the class type things (like the WFA) wouldn't be profitable, since many wanted (or needed) those for things they participate in, and places that do them were charging quite a bit for what was basically someone presenting for a number of hours (no need for a lot of costly gear like actual climbing events and such).

 

[BillyGr]

Retail stores are bleeding, and it will likely only get worse. I decided to get my dog a jacket, REI carries a brand I like. I stopped by as it's near my house, nothing but small sizes, very few hiking dogs wear small. I drove home, called up my Amazon app, jacket is on the way

Maybe that's why? The larger sizes already sold while those smaller ones were still hanging around, hoping for some customers who wanted a jacket for their dogs to go for a walk on the local street

 

[Ear Drum]

I'd imagine anyone taking a course or traveling with REI would also buy gear, clothing and supplies there. And talk positively about it, post on social media, etc - lot of good word of mouth lost now.

 

[daxs]

This impacts things like trips to Grand Canyon and WFA courses. Personally, though I've been a member for years, I've never been on an REI trip or course (aside from some in-store stuff) - but I think folks who took them benefitted and enjoyed. As well, the guides and teachers were able to connect with clients through the national reach of REI. I hope these local guide services that were contracting with REI will be able to carry on without these trips.


Here's an article about it from Backpacker - https://www.backpacker.com/news-and-events/news/rei-closes-experience-program-lays-off-guides/

REI Closes Experiences Program, Will No Longer Offer Trips or Classes
After four decades of running outdoor adventure trips and educational courses, REI is eliminating more than 400 jobs to focus on its core retail business, the company’s CEO said on Wednesday.
Published Jan 8, 2025

... “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,” [REI CEO] Artz wrote. ...The closure of the department will eliminate 180 full-time employees and 248 part-time guides from the company, beginning this week. ...


From their local paper: https://www.seattletimes.com/busine...s-of-employees-axes-tour-and-events-business/

Struggling REI cuts hundreds of employees, axes tour and events business
Jan. 8, 2025

...Experiences have been a staple of REI for more than 40 years. But that side of the co-op has never been profitable. To keep it afloat, REI has had to use money from the retail side to subsidize Experiences, which loses millions of dollars every year.

REI has 25 million members, 8.5 million of whom purchased something from the co-op last year. Of those, just 40,000 went through an Experiences class or event....



From the REI site: https://www.rei.com/events

An Important Update About REI Experiences
REI has announced the closure of its Experiences division to prioritize the core retail business. REI Adventures, outdoor classes and day tours are no longer offered.
For additional information, please visit our FAQ page.



More from REI, from: https://www.rei.com/events/resources/faqs

"All outdoor classes, day tours, and REI Adventures trips are permanently canceled. REI Adventures and Wilderness First Aid courses in progress at the time of this announcement will continue through completion.
In-store programming will continue to be offered."

I i

This impacts things like trips to Grand Canyon and WFA courses. Personally, though I've been a member for years, I've never been on an REI trip or course (aside from some in-store stuff) - but I think folks who took them benefitted and enjoyed. As well, the guides and teachers were able to connect with clients through the national reach of REI. I hope these local guide services that were contracting with REI will be able to carry on without these trips.


Here's an article about it from Backpacker - https://www.backpacker.com/news-and-events/news/rei-closes-experience-program-lays-off-guides/

REI Closes Experiences Program, Will No Longer Offer Trips or Classes
After four decades of running outdoor adventure trips and educational courses, REI is eliminating more than 400 jobs to focus on its core retail business, the company’s CEO said on Wednesday.
Published Jan 8, 2025

... “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,” [REI CEO] Artz wrote. ...The closure of the department will eliminate 180 full-time employees and 248 part-time guides from the company, beginning this week. ...


From their local paper: https://www.seattletimes.com/busine...s-of-employees-axes-tour-and-events-business/

Struggling REI cuts hundreds of employees, axes tour and events business
Jan. 8, 2025

...Experiences have been a staple of REI for more than 40 years. But that side of the co-op has never been profitable. To keep it afloat, REI has had to use money from the retail side to subsidize Experiences, which loses millions of dollars every year.

REI has 25 million members, 8.5 million of whom purchased something from the co-op last year. Of those, just 40,000 went through an Experiences class or event....



From the REI site: https://www.rei.com/events

An Important Update About REI Experiences
REI has announced the closure of its Experiences division to prioritize the core retail business. REI Adventures, outdoor classes and day tours are no longer offered.
For additional information, please visit our FAQ page.



More from REI, from: https://www.rei.com/events/resources/faqs

"All outdoor classes, day tours, and REI Adventures trips are permanently canceled. REI Adventures and Wilderness First Aid courses in progress at the time of this announcement will continue through completion.
In-store programming will continue to be offered."

Many years ago I took an REI trip to Patagonia, both the Argentina and Chile side. It was very well run. Our local guides were great. I still keep in touch with one of the guides and one of the other vacationers.

 

[TomK]

They didn't say anything about it, but I wonder if the cost/difficulty in obtaining liability insurance was a factor. I expect they don't let you go until the weight of the disclaimers/waivers they make you sign equals the weight of your pack, but even so, the cost of defending a suit could be great, and an adverse judgement could be devastating. You don't want a small part of the business to take down the main business,

TomK

 

[DayTrip]

They didn't say anything about it, but I wonder if the cost/difficulty in obtaining liability insurance was a factor.

That has to be a huge factor. For the in store instruction aren't they just paying one employee and charging as much as a few hundred bucks per customer to run the course? How do you lose money doing that? And if nobody signs up what are they losing? Their employee is already on the clock and can do something else. Even if one person shows up for a $49 map and compass course they have to be making a nominal amount of money.

I can see the travel trips all over the world being unprofitable but you'd think the instruction courses would still do well.