What's Happening?
REI Co-op has decided to close its Experiences adventure travel business after nearly 40 years of operation. This decision, effective January, will lead to the layoff of 428 employees, including 180 full-time
and 248 part-time guides. The closure was announced by REI's CEO Eric Artz, who cited the business's unprofitability as the primary reason for the shutdown. Despite exploring various options to sustain the business and preserve jobs, the company concluded that it was necessary to adjust course due to financial constraints.
Why It's Important?
The closure of REI's Experiences business highlights the challenges faced by companies in the adventure travel sector, particularly in maintaining profitability. This move affects not only the employees who are losing their jobs but also the broader outdoor and travel industry, which may see reduced offerings and opportunities for adventure travel enthusiasts. The decision reflects broader economic pressures and the need for businesses to adapt to changing market conditions to ensure sustainability.
