RetailUS

Stitch Fix Layoffs

January 2023

Stitch Fix announced a layoff affecting 0 employees (20% of its workforce) in January 2023. The company operates in the Retail sector.

People Affected

Percentage

20%

Announced Date

Jan 5, 2023

About

Stitch Fix, the online personal styling service, is laying off 20% of its salaried workforce, impacting approximately 340 employees based on its June count of about 1,700 salaried staff. This significant reduction, announced on Thursday, comes as founder Katrina Lake reassumes the role of interim CEO following the immediate departure of CEO Elizabeth Spaulding. The company, which experienced a surge during the pandemic, has been struggling with declining sales, a shrinking customer base, and failed initiatives like the Freestyle direct-buy option. Additionally, the closure of its Salt Lake City distribution center will result in about 150 further layoffs. These cuts aim to address financial challenges and reposition the brand in the competitive apparel subscription industry.