REI announces more layoffs coming for hundreds
Hundreds of people will be laid off from REI as the company braces for revenue declines, according to the company's CEO
The CEO of REI announced the company will lay off hundreds of workers once again.
REI CEO Eric Artz said in a letter Thursday that the company will reduce its workforce by 357 people, including 200 people at its Seattle-based headquarters, six in sales and customer service, 30 in experiences and 121 in its distribution centers.
Artz said the layoffs were “primarily driven by financial necessity.” Every employee losing their job will receive separation benefits, including severance, COBRA and outplacement support and services, according to Artz.
“As you know, the state of the business — and our industry — has become increasingly challenging and highly promotional,” Artz wrote in his letter.
“We are planning this year’s revenue to be down from 2023, reflecting the macroeconomic conditions we are expecting for 2024,” Artz said. “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.”
Last spring, REI cut 167 jobs from corporate positions and another 275 employees in lead roles were laid off in the fall.
“As I shared in my most recent CEO Huddle, while the U.S. as a whole has avoided entering a recession (by definition, two consecutive quarters of total U.S. market decline), outdoor specialty retail has experienced four quarters of decline — and that trend has been worsening,” Artz wrote in the letter.
The company filed no WARN listing in Colorado as of Friday morning, so it’s unclear how many Colorado workers will be affected.
The Worker Adjustment and Retraining Notification Act is a law that requires employers to provide employees experiencing employment loss with a 60-day notice prior to a layoff, although some exceptions apply, according to the Colorado Secretary of State.
For more on this and other stories, visit our partners at 9News.com.
The Denver Gazette contributed to this report.
FILE PHOTO: REI, the suburban Seattle outdoor equipment and apparel retailer, IN 2020 purchased a multi-tenant retail building west of its existing store at 1376 E. Woodmen Road on Colorado Springs’ north side.
