REI Workers Furloughed as Stores Stay Closed

REI said earlier his week that it would keep its 162 retail locations closed and furlough some of its roughly 14,000 employees without pay for 90 days as the COVID-19 pandemic continues to halt much of the retail industry.

CEO Eric Artz, who announced the decision in a blog post, said he and the Kent-based company’s board would go without compensation for six months. Senior executives will take a 20% pay cut and forgo any 2020 bonuses while other corporate staff will see their pay cut 25%. Furloughed employees will continue to receive health benefits during the 90-day period, according to the company.

“We believe this will be the most challenging period for our business, and we have to make some immediate decisions that impact REI employees,” Artz said.

On March 15, REI announced it was temporarily closing retail locations and putting employees on paid leave through April 15. But as the coronavirus crisis has continued, and as more governments have ordered the shutdown of nonessential businesses, REI decided to extend the closure.

Artz stressed the temporary nature of the furloughs and said the company hopes to begin reopening some retail operations, starting with curbside pickup, in 45 days. “We look forward to welcoming you all back into our stores when it’s safe to do so,” he said.