Outdoor retailer REI is planning widespread workforce reductions across multiple areas, including its corporate headquarters. According to a recent post by CEO, Eric Artz, the layoffs impacted a total of 357 employees, among them:
- 200 headquarters staff.
- 121 distribution center workers.
- 30 who were employed in Experiences.
- Six from S&CS.
No “non-HQ store-specific” roles – it should be noted – were affected.
“Decisions like these—with real impacts to people’s lives and livelihoods—are the most difficult that I must make as your CEO,” said Artz, who noted there was a strategic and financial aspect to the decision. “The coming days are going to be tough as we let go of a lot of good people. We’re going to do everything we can to support them, but that will not make this moment any easier.”
Per Artz, REI made the decision after taking a strategic approach to assessing team structures versus business need. The goal was to ensure consistency across the company, with individual supervisors determining which roles would be cut.
“Many decisions were based on work that no longer exists,” said Artz. “We also focused on reducing duplicative work, layers and hierarchy to build more efficient and connected teams.”
“When we plan our revenues down, we must adjust our plans and cost structure accordingly,” he continued. “We must also continue our work to return REI to profitability to set the co-op up for long-term health and success. As a cooperative, we have both the privilege and the deep responsibility to think longer term, about generations, not just quarters. We can—and must—get through this moment because the world needs a healthy REI. We understand time outside is fundamental to a better life, a life well lived. Our mission is to help more people get outside and to create equitable access for everyone to spend more time outside.”
