REI Co-op has announced its decision to exit the Experiences business, which includes adventure travel, day tours, and classes. More than 400 employees were expected to be laid off. REI’s president and CEO, Eric Artz, announced the news on Jan. 8 in an email to employees.'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,' Artz said.
Preliminary financial results for 2024 indicate that REI will be close to breakeven for both Pre-Dividend Operating Income and Free Cash Flow, marking an improvement over 2023. Artz said that the Experiences business served only 40,000 customers in 2024, less than 0.4% of all co-op customers, and was unprofitable. The closure will impact 180 full-time employees and 248 part-time guides. Full-time employees will receive their regular salary through March 9, 2025, and remain active on benefits through the end of March. They will also be eligible for severance, healthcare coverage continuation via COBRA, and outplacement service support. Part-time employees will remain benefits-eligible through January 2025 and will receive a severance payment. Customers with current bookings will receive full refunds, and the company will work with travel partners to terminate existing contracts. Looking ahead, REI plans to focus on its core business areas, including growth in priority activities such as camping, backpacking, running, hiking, and outdoor life. The company will also invest in tools to manage inventory and enhance customer experiences both online and in stores. 'Our roots are in the gear and apparel we sell and the outdoor moments they enable,' said Artz. 'This has been the core of our business for 86 years—and I believe when we stay focused on what we do best, we can and will succeed.' REI, Recreational Equipment Inc., headquartered near Seattle, is the nation’s largest consumer co-op with a community of 24 million member