(WTAJ) — Recreational Equipment, Inc. – better referred to as REI – has announced that the company might be doing layoffs.
In a release from CEO Eric Artz mentioned that the company might be reducing the overall workforce by way of 357 other folks, impacting 200 people at its Washington headquarters, 6 in customer service, 30 in “stories” and 121 in distribution centers.
Artz mentioned the out of doors retailer has skilled 4 quarters of decline, and the fashion has been worsening. The company expects conditions to remain “very challenging” all over 2024 because of the decline.
“While this paintings was essentially driven by financial necessity, we took a strategic method to evaluating crew buildings towards business wishes to verify consistency across the group as leaders made decisions about which roles to get rid of,” Artz said in the unlock. “While many choices had been in line with paintings that now not exists, we additionally enthusiastic about reducing duplicative work, layers and hierarchy to construct extra efficient and attached groups.”
Managers were expected to inform all employees whose jobs are being eradicated in one-on-one conversations by means of the end of the day Thursday. Every worker whose task is eliminated will obtain separation advantages, including severance, in step with the discharge.
“We will talk more about what the trail ahead seems like over the coming days and weeks, but the following 24 hours are about supporting folks. Today, I merely ask that you just handle yourselves and every other,” Artz mentioned.
The Worker Adjustment and Retraining Notification Act (WARN) protects workers, their households and communities by way of requiring employers with one hundred or extra staff to provide no less than 60 calendar days advance written understand of a plant remaining and/or mass layoff.
WARN necessities generally do not count those that have worked less than six months within the remaining 12 months and those that paintings a mean of lower than 20 hours per week. According to an REI spokesperson, the company believes the layoffs announced had been in compliance with WARN requirements.
REI reports it has over 16,000 employees running across 181 locations in 41 states.
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