Outdoor retailer REI is closing its Experiences division, which includes cycling tours, learn-to-ride classes, and mechanics workshops, affecting 428 employees.
REI announced on Tuesday that it is shutting down its Experiences division, marking the end of its adventure travel and outdoor education offerings after four decades. The closure will result in the loss of 428 jobs—180 full-time employees and 248 part-time guides—as the company shifts its focus to more profitable segments of its business.
The Experiences division, which has been part of REI for 40 years, has provided outdoor experiences to nearly a million people. Despite this legacy, the division has struggled financially and failed to achieve profitability, even in its peak year of 2019. REI President and CEO Eric Artz informed staff in an email that the division served approximately 40,000 customers in 2024, representing less than 0.4% of the company’s total customer base, while incurring significant losses.
In the email, Artz described the decision to close the division as “difficult but necessary,” explaining that it was essential for the company to adopt a more sustainable economic model.
“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,” Artz wrote.
Impact on Employees and Customers
The closure will affect 428 employees, with full-time workers receiving their salaries through March 2025, along with severance packages, extended healthcare coverage, and job placement assistance. Part-time employees will receive severance pay and retain benefits until January 2025.
REI will also terminate contracts with its travel partners. Customers who had already booked experiences for 2025 will receive full refunds.
Financial Performance and Strategic Shift
While REI’s overall financial performance showed some improvement in 2024, it still fell short of profitability. Artz stated that preliminary financial results suggest the company will be close to breaking even in terms of pre-dividend operating income and free cash flow. However, more work remains to return the co-op to sustainable, profitable growth.
“Every path to profitability for the Experiences business would have required us to divert resources away from more profitable areas of our business that reach a broader customer base and deliver greater financial outcomes,” Artz explained.
As part of its strategy to achieve profitability, REI plans to focus its investments on areas that are most aligned with its long-term goals and mission. This includes doubling down on its core business of outdoor gear and apparel.
Looking Ahead
REI remains committed to outdoor education but will scale back its offerings. While the company will no longer operate its Experiences division, some indoor classes will continue in 2025 under a new “events” format. Additionally, REI is exploring new methods of delivering outdoor education, with a small team dedicated to testing fresh approaches over the next year.
“Our roots are in the gear and apparel we sell, and the outdoor moments they enable. We believe that by staying focused on what we do best, we can succeed,” Artz concluded, emphasizing the company’s commitment to its core mission of connecting people with the outdoors.
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