Stitch Fix is laying off 15% of its salaried employees, internal memo says
Stitch Fix Logo on smartphone. Arrangement in Hastings-on-Hudson New York U.S.A, Saturday June 5, 2021. Stitch Fix Inc. plans to publish earnings June 7.
Tiffany Hagler Geard | Bloomberg | Getty Images
Stitch FixAccording to an internal memo seen by CNBC, 15% of its salaried employees will be laid off, mostly in corporate and styling leadership roles.
In a memo, Elizabeth Spaulding, CEO of Stitch Fix said that she had taken a fresh look at her business to determine what was necessary for building our future. This was an extremely difficult decision but it was necessary to help us position ourselves for profitable growth.
A memo stated that approximately 330 workers were made aware of the changes on Thursday morning. The company estimates that this number amounts to 4%.
Stitch Fix expects to release fiscal second-quarter results shortly after market close.
The company’s shares were slightly lower by 4% on Thursday. Year-to-date, the stock has fallen by 55%.
The story continues to develop. Stay tuned for new updates.