Why REI employees speak out about company culture

REI has long been known for its progressive – if not aggressive – corporate culture.

The company bills itself as a “values-based organization” and has historically donated about 3% of its profits annually to causes such as protecting public lands. It is also a member-owned “cooperative” that offers deep discounts to its employees, informally known as “Green Vests,” and has built a reputation as a sought-after employer.

But all is not well in the house that Hiking has built, writes my colleague Phil Wahba in a new post. The company posted a $311 million loss last year, the second year in a row, prompting management to tighten its belt and carry out several waves of layoffs.

“Customers are changing, and so is the global landscape, so we are trying to meet the demands and do the right thing for the long-term health of the cooperative.”, says CEO Eric Artz. “There is no mission without margin.”

But the green vests aren't happy. REI employees are angry about the layoffs and reduced hours. Ten stores have unionized in recent years, and many employees say the company is trying to resemble a big-box chain like Walmart rather than a free-spirited mountain outfitter. This year, employees at a New York City store protested the annual REI sale, and many across the country wear buttons that read, “Ask me about my pay cut.”

“REI places a lot of emphasis internally and externally on the fact that it is a different kind of company,” says Claire Chang, an employee at the New York City office. “But then we see decisions that show that they are ultimately more like the big corporations.”

REI faces a major challenge: keeping the Green Vests happy, preserving its unique corporate culture, and keeping up with the competition.

You can read more about the battle for REI’s soul here.

Azure Gilman
[email protected]

Today's edition was curated by Emma Burleigh.

Around the table

A summary of the most important HR headlines.

Silicon Valley initiatives to bring more women and people of color into the technology industry have seen funding cut or renamed amid increasing attacks on DEI policies. Washington Post

Resort-like workspaces are on the rise, representing a last-ditch luxurious attempt by employers to lure their employees back to the office. New York Times

Fintech company Revolut achieved a valuation of $45 billion through a secondary sale of its employee shares to investors, with a net profit of $500 million forecast for employees. The Guardian

Following the arrest of the Goldman Sachs employee, who had previously been convicted of sexual offenses, a discussion arose about how employers should monitor their employees' criminal offenses. Financial Times

Water cooler

Everything you need to know about Assets.

High stakes. The CEO of the software company Palantir says: he only needs two minutes with an applicant to know whether he would keep them or cut them off. —Eleanor Pringle

All or nothing. British smartphone startup Nothing is ambitious Employees return to the office five days a weekand said remote work was incompatible with “high ambition and high speed.” —Ryan Hogg

Not so fast. One of Oprah's former business coordinators says that all applicants interested in The meeting with the TV presenter would be excluded from the interview process. —Orianna Rosa Royle

This is the web version of CHRO Daily, a newsletter that helps HR leaders meet workplace demands. Sign up to get it delivered to your inbox for free.