Stitch Fix Layoffs 15% of Its Salaried Roles

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Rajendra Choudhary
Rajendra Choudharyhttps://livetimesnews.com
Rajendra Choudhary is The Founder & CEO of Live Times Media Pvt. Since 2019 He Started his Digital Journey and Built a Victory in The Media and Education Industry with over 5 Websites and Blogs.

Stitch Fix Layoffs 15% of Its Salaried Roles: Online clothing retailer Stitch Fix is laying off about 330 employees, or 15% of its paid workforce, amid slowing growth in the e-retail business.

The online Stitch Fix service, launched in 2011, started growing a year ago, but it has been a challenge this year as more shoppers come to stores and spend less online. The company also faces high costs.

Stitch Fix Layoffs 15% of Its Salaried Role

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Shares of Stitch Fix have fallen by more than half this year to less than $1 billion. Stitch Fix lowered its forecast for this year after saying the number of active users was lower than expected.

Stitch Fix said the job cuts would be focused on corporate roles and leadership roles, and that the layoffs were to cut costs amid continuing inflation and declining consumer demand for its products and services. The company said layoffs this year would save between $40 million and $60 million. It also expects restructuring costs of approximately $15 million to $20 million, which will be reported in its upcoming quarterly results.

Stitch Fix Layoffs 15% of Its Salaried Roles
Stitch Fix Layoffs 15% of Its Salaried Roles {credit: foxbusiness.com}

What’s Next for SFIX Stock

SFIX stock looks to be another casualty as investors move their capital out of fast growing but unprofitable technology companies and into more stable blue-chip and cyclical securities. The mounting losses and staff cuts are further shaking confidence in Stitch Fix and pushing its share price to new lows. Already down more than 90% this year, the stock looks likely to enter penny stock territory in the near future. Investors should proceed with caution regarding SFIX stock.

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