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The Wall Street Journal

June 1, 2020, 9:03 p.m. EDT

Stitch Fix laying off around 1,400 workers in California

Online retailer says affected employees will have opportunity to relocate

By Charity L. Scott


Bloomberg News
Katrina Lake, founder and chief executive of Stitch Fix Inc., speaks in 2018.

Stitch Fix Inc., a personal-shopping service and clothing retailer, notified its roughly 1,400 California-based stylists Monday, or about 18% of its total staff, that they will be losing their jobs.

Most of the layoffs will take place in September and those affected will have the opportunity to relocate and stay with the San Francisco-based company. The online retailer said it will be hiring about 2,000 stylists in Dallas, Pittsburgh, Cleveland, Minneapolis and Austin, Texas, beginning this summer, and going through 2021.

“Any decision that impacts our hardworking and talented people is incredibly tough, but we believe this is the right thing to do for our business,” Stitch Fix (NAS:SFIX)   founder and Chief Executive Katrina Lake said in a statement. The company will be providing severance payments and bonuses, as well as extended health-care coverage, she said.

The company has approximately 8,000 employees, 5,100 of which are stylists. The stylists help select items that are shipped to customers each month as part of the subscription service. Customers are charged for the items they keep.

An expanded version of this report appears on WSJ.com:

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