Outdoor retailer REI is laying off 357 corporate employees as it braces for a difficult year.

The Seattle Times reports CEO Eric Artz notified employees of the cuts on Jan. 25. According to the memo, the layoffs will affect 200 employees REI’s headquarters, six from sales and customer support, 30 from teams that support classes and multiday trips, and 121 in distribution centers.

In Washington, the layoffs will affect 175 employees, representing 6.4% of the total workforce in the state, according to REI. Employees who work in the Seattle-founded company’s stores will not be affected by the wave of cuts.

REI is projecting a difficult year for sales, reports The Seattle Times. The company is expecting this year’s revenue to be down compared to 2023, a difficult year that saw outdoor specialty retail sales decline. Artz said the outdoor retail industry has become more challenging and the layoffs were due to financial necessity.

“While many decisions were based on work that no longer exists, we also focused on reducing duplicative work, layers and hierarchy to build more efficient and connected teams,” Artz said in the memo.

REI has two locations in Alabama: Huntsville and Birmingham.