Stitch Fix to Cut 20% of Salaried Roles, CEO Steps Down
Stitch Fix CEO Elizabeth Spaulding is stepping down from her role as the struggling fashion styling service cuts close to 20% of salaried roles.
The company’s founder Katrina Lake announced the news in a memo to employees and confirmed she will step in as interim CEO until a successor is named.
More from Footwear News
Amazon, Stitch Fix and Other Companies Laying Off Employees in 2023
Amazon to Lay Off 18,000 Employees As It Grapples With 'Uncertain Economy'
Exclusive: Doug Howe Named CEO of Designer Brands, Will Succeed Roger Rawlins
“Despite the challenging moment we are in right now, the board and I still deeply believe in the Stitch Fix business, mission and vision,” Lake wrote.
Stitch Fix will also close its Salt Lake City distribution center.
In June, Stitch Fix cut close to 330 positions, or 15% of salaried roles, which represented 4% of total roles. These cuts were mostly concentrated in non-technology corporate positions and styling leadership roles. At the time, Spaulding said the layoffs were partly a result of the company’s business perfomance and “an uncertain macroeconomic environment.”
Stitch Fix, which offers stylist-curated boxes of clothing and accessories, launched in 2011 and went public in 2017. In December, the company cut its full-year sales outlook after reporting a drop in active clients in Q1 during what Spaulding described as a “difficult macro environment.”
Other retail and technology companies have recently announced layoffs as well. Just yesterday, Amazon CEO Andy Jassy confirmed that the e-commerce giant would eliminate a total of 18,000 roles as the company grapples with an uncertain economic environment permeating tech and other industries. Salesforce this week announced it would cut 10% of its staff after laying off hundreds of employees in November. And last year, tech and retail companies laid off thousands of employees to cut costs amid a rough economic environment.
Lake said impacted Stitch Fix employees will receive at least 12 weeks of pay, healthcare support through April 2023 and career support.
Shares of Stitch Fix were up more than 2% following the announcement.
Best of Footwear News
Sign up for FN's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.
