Last Wednesday, Simon Perkins, the president of Orvis, announced that the company would reduce its workforce by 4% by the end of 2025. This is the company’s second round of layoffs in less than a year.
Previous Cuts, Closed Stores, and a Shift From Print
In October 2024, Perkins issued a similar statement, informing the public that the fly fishing company was eliminating 112 jobs — 8% of its employees — over the course of 18 months.
At the time, Perkins explained that the company needed to adapt to ensure it’d be around for another 170 years: “Over the course of our nearly 170-year history, the company has experienced similar cycles, but today’s challenges are new, and they require us to be bold in order to continue sharing stories, experiences, and products that inspire our customers well into the future.”
In addition to the layoffs, several retail locations closed and the catalogue service ended, enabling the brand to eliminate the use of 2,500 tons of paper every year.
Tariffs Blamed for Latest Financial Strain
A little over half a year later, Perkins is pointing to international commerce as the main strain on the businesses. “Tariffs have disrupted our business model in ways we haven’t faced before and have exposed a clear path to solidifying our long-term future,” he wrote.
In April of this year, the Trump administration announced a universal tariff increase of 10%, with some partners seeing increases as high as 50%, resulting in an average increase of 16.1% across all imports.
The idea is that the shift in tariffs would generate more revenue for the United States over the next decade and motivate manufacturers to operate in America. But they simultaneously raise the cost of operations, making it difficult for companies like Orvis to thrive.
Retaliation From Abroad Fuels More Uncertainty
In response to the Trump administration’s tariffs, many countries announced counter-tariffs, further increasing the cost of doing international business. While some tariffs were temporarily paused after a massive public outcry, the unpredictability and volatility of material goods continue to impact many outdoor brands.
Outdoor recreation accounts for $1 trillion of spending and 3.1% of jobs in the U.S. Countries like China have mastered low-cost textile manufacturing, making it difficult to replicate the same quality at the same cost in the United States. In fact, many U.S. companies rely on labor from other countries to complete intricate material steps at a lower cost.
Not Just Small Brands Feeling the Pinch
Tariff hikes have historically been most devastating to small businesses, which struggle to maintain profits or even survive during trade wars. But medium and large-sized businesses like Orvis are also reeling from the effects of material costs.
In May of this year, La Sportiva’s North American president, Jonathan Lantz, expressed concerns about the shifting tariff landscape, like Perkins. Lantz stated that the company can’t absorb associated tariff costs, which would likely result in higher costs for consumers.
The reality is that even before the international trade war began this spring, many outdoor brands were struggling to adapt to a changing economy due to the pandemic and inflation over the past 5 years. Big-name companies like Patagonia and REI announced revenue struggles, ultimately reducing their staff and some company programs.
The Outdoor Retailer Trade Show — one of the biggest outdoor events in the country — announced that it would only be hosting one trade show instead of two in the future. The Trump administration’s tariffs are just the latest obstacle that outdoor gear companies are facing, but they’re a significant one.
Economic Outlook Remains Murky
“The first half of 2025 has presented unprecedented challenges that few retailers could have predicted even six months ago,” said Perkins.
While companies like Orvis, Patagonia, and REI look for ways to offset the newest wave of manufacturing costs, economists are giving mixed signals about the future. Tariffs, international conflict, and slowing consumer spending could indicate a declining economy, while cooling inflation, falling unemployment, and GDP growth could indicate national health.
“Moving forward, Orvis will be returning to our roots and shifting our entire focus to the core strengths of our business — the fly fishing and wingshooting pursuits that have guided our company for nearly 170 years and inspire our customers in unique and powerful ways,” said Perkins.
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