RetailUS

Stitch Fix Layoffs

June 2020

Stitch Fix announced a layoff affecting 1,400 employees (18% of its workforce) in June 2020. The company operates in the Retail sector.

People Affected

1,400

Percentage

18%

Announced Date

Jun 1, 2020

About

Stitch Fix, an online personal styling service, announced in June 2020 that it would lay off 1,400 stylists based in California, representing about 18% of its then 8,000-person workforce. The layoffs, set to occur through September, were part of a strategic shift to relocate styling roles to lower-cost U.S. hubs like Dallas, Austin, and Minneapolis, where the company planned to hire 2,000 new stylists starting that summer. This restructuring, driven by cost-saving measures and operational adjustments amid the COVID-19 pandemic's uncertainty, offered affected California employees the option to relocate with support, including severance and extended benefits for those who chose not to move.