April 16, 2024

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REI Announces Corporate Layoffs

REI Announces Corporate Layoffs

REI Announces Corporate Layoffs

Amid “raising uncertainty” and an exertion to “increase the co-op in excess of the lengthy time period,” REI Co-op laid off 167 staff members this week. CEO Eric Artz observed that REI has designed changes at its headquarters to refocus resources in an energy to access its 2023 objectives, together with “receiving back to profitability as speedily as doable.” This provided reorganizing and combining a number of divisions in the headquarters and laying off 167 staff, which the co-op stated is approximately 8 per cent of the headquarters workforce and fewer than 1 per cent of the total workforce.

Whole Retail’s Take: We’re commencing to see far more providers staying proactive in downsizing labor forces amid the uncertainty of the retail and client landscape. REI joins Wayfair, Foot Locker, and Stitch Resolve in asserting work cuts considering the fact that the begin of the 12 months. Whilst REI’s most lately reported economical details offered a seemingly positive outlook, with income up 36 % in 2021 and web revenue of $97.7 million, the co-op’s steps display it is fearful about soaring charges and preserving its amount of profitability. Work cuts will preserve REI cash, which will be important as the co-op hedges against slowing product sales in a challenged expending environment.