Consumer

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

An REI store in Santa Fe.

Photographer: Cate Dingley/Bloomberg

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.