REI is known for a progressive corporate culture, but some employees don’t feel the love

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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. “Without flexibility, there is no mission.”

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
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Today's edition was curated by Emma Burleigh.

This story originally appeared on Fortune.com