Patagonia has laid off 41 employees as part of a corporate restructuring at its Ventura, California headquarters, according to a LinkedIn post by CEO Ryan Gellert. The layoffs represent around 1% of the company’s workforce, with the changes aimed at positioning the company for future success in the face of economic challenges.
The restructuring involves evolving many corporate roles, creating new positions, and eliminating others. Patagonia plans to focus primarily on three key areas moving forward: product development, storytelling, and grassroots impact through environmental partnerships. While Patagonia remains profitable, Gellert acknowledged that the company is susceptible to the same economic headwinds affecting others in the outdoor retail industry.
This marks the second round of layoffs at Patagonia in 2024. In June, 90 remote customer service workers were offered the option to relocate within proximity to one of seven metro areas or accept a severance package. Most employees chose the latter.
Patagonia joins other retailers, such as REI, CVS, Walmart, and Dollar Tree, in announcing layoffs due to broader macroeconomic issues. In January, REI cut 357 jobs, and other companies have confirmed corporate layoffs throughout the year.
Despite the job cuts, Gellert stressed that the restructuring was not a result of individual failures but rather a need to reshape parts of the business to adapt to current economic conditions. Those affected by the layoffs will receive a minimum of 22 weeks of pay, along with one year of health insurance coverage and career transition assistance.
The layoffs follow Patagonia’s major business shift in 2022 when founder Yvon Chouinard and his family transferred ownership of the company to the Patagonia Purpose Trust and the Holdfast Collective. This move was part of an effort to ensure that the company’s profits, not reinvested into the business, would be used to protect the environment, amounting to about $100 million annually.
Patagonia continues to focus on its mission of sustainability and responsible business practices while navigating the current economic landscape.
