Dive Brief:
- Stitch Fix is reducing its salaried workforce by 15%, about 330 jobs, CEO Elizabeth Spaulding said in an internal memo sent to employees Thursday morning, which is now posted online.
- The reduction reflects about 4% of all company roles, mostly non-technology and styling leadership, according to the company blog post.
- A company spokesperson said no stylists are affected, and declined to confirm reports from several California-based “VIP” stylists, speaking to Retail Dive on condition of anonymity out of concern for their final paychecks, that they were laid off. VIP stylists work with influencers, celebrities and other high-profit clients. The spokesperson said only styling leadership were affected.
Dive Insight:
Spaulding cited “recent business momentum and an uncertain macroeconomic environment” as reasons for taking “a renewed look at our business and what is required to build our future.”
She called it “an incredibly difficult decision” that was necessary if the company is to return to profitable growth. “We are in the midst of a transformation and we know not every day or every moment will be easy,” she said. “There will be tough choices along the way, and this is one of those.”
The company has tried to move beyond its niche apparel box business, which includes styling services from both humans and tech, by opening a traditional e-commerce site. A couple of disappointing quarters followed that, however, leading the company to make further changes.
In the memo, Spaulding called it “a challenging period” but said her team is confident in its long-term strategy. The company plans investments in technology and product and to “innovate our client experience,” she also said.
In 2020, Stitch Fix laid off some 1,400 employees, including almost its entire California-based styling team.
Stitch Fix reports the results from its most recent quarter, which ended April 30, later on Thursday.
