By Yasin Ebrahim

Investing.com — Stitch Fix slumped Thursday as the apparel e-retailer reportedly plans to slash 15% of its workforce to lower costs and maintain its path toward profitable growth. 

Stitch Fix (NASDAQ): fell 5% after the news.

It comes shortly before the release of the second quarter fiscal report by the company. This will come after close to the markets. 

“We’ve taken a renewed look at our business and what is required to build our future,” noted Stitch Fix CEO Elizabeth Spaulding, according to an internal memo that was seen by CNBC. “While this was an incredibly difficult decision, it was one needed to make to position ourselves for profitable growth.”