Patagonia has given dozens of employees just three days to agree to a cross-country move or risk losing their jobs in a major restructuring.
The apparel retailer informed 90 employees of its Customer Experience (CX) team that they would need to relocate closer to one of Patagonia’s seven hubs to maintain their position.
The affected employees can all work remotely, but now must live within 60 miles of centers in Atlanta, Salt Lake City, Reno, Dallas, Austin, Chicago or Pittsburgh.
The announcement was made at a town hall meeting on Tuesday, with employees given until Friday to make a decision.
It was offered to the employees $4,000 for moving expenses and additional vacation days. Those who accept must move in by September 30th.
Patagonia has given dozens of staff just three days to agree to relocate across the country or face losing their jobs in a major restructuring
Those who do not respond will automatically begin the layoff process. The announcement affects more than two-thirds of Patagonia’s CX team.
The ultimatum has angered many employees. They believe it goes against the founding principles of the brand.
“Patagonia is no longer a small niche outdoor company, it’s a big company in sheep’s clothing,” said one disgruntled employee.
“I still think they made good products, but I don’t think they treat their people as well as they claim.”
Patagonia was founded in 1973 by mountaineer Yvon Chouinard as a sustainable outdoor clothing brand.
Chouinard took a relaxed approach and lived by the philosophy of ‘let my people go surfing’.
Over the years, the foundation has taken pride in its approach to climate change. The foundation has transferred its assets to a foundation and a non-profit organization. The proceeds are used to combat global warming.
“It feels like they are full of shit and that they would rather spend their money on the world than on their people,” the employee added.
The apparel brand, led by CEO Ryan Gellert (pictured), has told 90 Customer Experience (CX) team employees that they will need to move closer to one of Patagonia’s seven hubs to maintain their positions.
The severance package was described as “generous,” but many could not understand why it was even being proposed.
“I definitely feel like I’ve been fired,” one employee said. ‘I’ve never been late for work; I have received nothing but excellent performance reviews.”
The worker accused Patagonia of stooping to “Walmart levels” and claimed the proposals stemmed from the brand’s reluctance to increase wages.
“We’ve been asking for a raise for a while, but they keep telling us that your pay is based on the cost of living in Reno and that you get to decide where you live,” the employee said.
The company’s headquarters in Ventura, California was not selected as one of the hubs.
“Unfortunately, a hub in California would not meet the criteria we set for a sustainable CX model,” Patagonia spokesperson Corley Kenna told Business Insider.
The affected staff can all work remotely, but now must live within 60 miles of centers in Atlanta, Salt Lake City, Reno, Dallas, Austin, Chicago or Pittsburgh.
Kenna added that the changes are aimed at addressing the CX team’s overstaffing rate, which has hovered between 200 and 300 percent in recent years.
“We were hoping to reach our required staffing levels through natural attrition, but those numbers were very low and staff retention remained high,” Kenna said.
CX employees also complained of feeling disconnected, the spokesperson said.
“These changes are critical for us to build a vibrant team culture,” Kenna explains.