Outdoor apparel giant Patagonia has laid off 41 employees as part of a broader business transformation aimed at positioning the company for future success. This marks the second round of layoffs in 2024, following the June decision to relocate or cut 90 customer service positions.
CEO Ryan Gellert announced the changes on LinkedIn, acknowledging the company’s vulnerability to industry-wide economic challenges despite remaining profitable. He emphasized that the restructuring is designed to prepare Patagonia for the “next 50 years” by focusing on improving product quality, enhancing storytelling, and boosting grassroots activism.
While the exact teams impacted by the latest layoffs were not disclosed, reports suggest the environmental, communications, and marketing teams may have been affected. Employees laid off were offered 22 weeks of pay and extended healthcare support for a year.
The company continues to evolve, with new roles being created and others eliminated as part of a wider restructuring effort. The next 90 days will be critical in implementing these changes to stay competitive in a shifting marketplace.
Despite financial challenges, Patagonia remains committed to its sustainability goals and “stakeholder capitalism,” a philosophy that values employee welfare alongside business growth.
