Stitch Fix to Cut 20% of Workforce as CEO Steps Down
The retailer said it planned to do “everything possible” to help impacted employees find new roles, including outplacement support and an alumni database that the impacted employees can join to have their information shared with potential employers.
The January layoffs follow another round of cuts for the retailer, which laid off about 15% of its salaried workforce in June last year. The retailer, known for selling curated boxes of clothing to its subscribers, grew during the COVID-19 pandemic, but it stalled as more shoppers started returning to brick-and-mortar retail. As CNBC reported, Spaulding’s efforts to reinvigorate the brand, including a program called Freestyle that allowed shoppers to purchase items directly from Stitch Fix, largely failed.
It’s the latest company to announce large-scale layoffs. Amazon also this week said it would in total cut more than 18,000 jobs this year, including jobs cut last November. Like Stitch Fix, Amazon experienced growth during the pandemic but has failed to maintain that momentum.