REI Plans to Cut Pay of New Hires and Reduce Employee Benefits (1)

Recreational Equipment Inc. plans to cut its pay rates for new hires and reduce benefits for current employees, a fresh flashpoint between the struggling retailer and its unionizing workforce.

“Effective July 1, 2026, the salary range will be reduced, which results in a lower starting hourly rate for new employees hired as of that date,” REI told staff in a February message viewed by Bloomberg.

In a separate message last month, Chief Executive Officer Mary Beth Laughton also told staff the company would make “a few focused changes” to current workers’ benefits, including slowing vacation time accrual, switching from guaranteed retirement ...