Outdoor goods store REI Co-Op is shutting down one of its businesses focused on experiences such as excursions, day tours and classes, the company announced Wednesday.

The company said it would lay off 180 full-time employees and 248 part-time guides in the Experiences division.

REI has 21 employees working in Experiences based in Colorado, a company spokesperson confirmed with The Denver Gazette over email. REI is headquartered in Seattle.

Full-time employees will continue getting paid their salary until March 9 and keep their benefits until the end of March, according to REI. Some workers who are split between stores and Experiences will discuss what options are there with store managers.

Part-time workers will get benefit eligibility until the end of January.

Sales at the outdoor apparel and gear retailer have been falling and the company lost $311 million in 2023, according to its annual financial statements. In 2022, REI lost $164 million.

Last January, the company also announced it would cut more than 100 people ahead of its annual financial report. It laid off 357 workers, including 30 in Experiences.

After the company put in efforts to turnaround the trends it’s facing over the past few years, REI is close to breaking even for 2024, CEO Eric Artz told employees in a company message Wednesday. REI’s financial report for 2024 has not been released yet.

But the Experiences division – which has been part of REI for more than 40 years – was bleeding money from REI.

“We are losing millions of dollars every year and subsidizing Experiences with profits from other parts of the business,” Artz said. “Even at our peak in 2019 — our best year for Experiences ever — we did not generate a profit.”

Artz wrote the company tried looking into different ways to keep the business alive but doing so required investments that could be better spent on more lucrative parts of REI’s business as it’s trying to recover.

He also added the company will announce how REI will work toward long-term profitability next month.

REI has 10 stores in Colorado including a new location in Durango set to open this summer.

“We’ve held out as long as possible, but the fact remains that Experiences is an unprofitable business for the co-op, and we must adjust course,” Artz said.