RetailUS

Stitch Fix Layoffs

June 2022

Stitch Fix announced a layoff affecting 330 employees (15% of its workforce) in June 2022. The company operates in the Retail sector.

People Affected

330

Percentage

15%

Announced Date

Jun 9, 2022

About

Stitch Fix, an online personal styling service, announced layoffs on Thursday, cutting 15% of its salaried workforce, which amounts to approximately 330 employees. This represents about 4% of the company's total workforce. The move is part of a cost-cutting effort to address challenges such as high inflation, reduced consumer demand, and rising expenses in supply chain, marketing, and labor. The company expects to save $40 million to $60 million in fiscal year 2023 from these cuts, while also forecasting a revenue decline of up to 15% for the fourth quarter. CEO Elizabeth Spaulding stated the decision aims to position Stitch Fix for profitable growth amid ongoing struggles to attract new users. The layoffs primarily affect corporate and styling leadership roles, reflecting broader trends in the tech and retail sectors as companies adjust to post-pandemic economic shifts.