Stitch Fix is laying off 15% of its salaried employees, internal memo says

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  • According to an internal memo seen by CNBC, Stitch Fix is ​​laying off 15% of salaried positions within its workforce, mostly in corporate roles and stylized leadership positions.
  • “We have taken a fresh look at our business and what is essential to building our future,” Stitch Fix CEO Elizabeth Spaulding said in the memo.
  • Stitch Fix is ​​set to announce quarterly earnings after the bell on Thursday.

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According to an internal memo seen by CNBC, Stitch Fix is ​​laying off 15% of salaried positions within its workforce, mostly in corporate roles and styling leadership positions.

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“We have taken a fresh look at our business and what is essential to building our future,” Stitch Fix CEO Elizabeth Spaulding said in the memo. “Although it was an incredibly difficult decision, it needed to position itself for profitable growth.”

About 330 people were informed about the cuts on Thursday morning, the memo said. This number represents about 4% of the company’s total workforce.

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The move comes three months after Stitch Fix cut its guidance for the year.

Stitch Fix’s business entirely online was seen as a bright spot during the first phases of the COVID pandemic, as spending shifted online. Now the company is facing higher transportation costs among other issues as consumers turn more to physical stores while pandemic restrictions are easing.

Stitch Fix is ​​set to report fiscal second quarter results after the market closes.

The company’s shares fell nearly 5.4 per cent on Thursday. Its market cap has plummeted below $1 billion, as the stock has fallen nearly 55% this year.

This story is developing. Please check back for updates.

Credit: www.cnbc.com /

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