Stitch Fix, the online personalized styling service firm, will be reducing its workforce by around 15 percent of salaried positions in order to return to profitability.
The layoff at Stitch Fix accounts for nearly 4 percent of the roles, or around 330 positions in total, with most of them in its non-technology corporate and styling leadership roles, Chief Executive Officer Elizabeth Spaulding said.
“The decision was one we needed to make to position ourselves for profitable growth. There will be tough choices along the way, and this is one of those,” Elizabeth Spaulding wrote in a message to Stitch Fix employees.
Stitch Fix expects to save $40 million to $60 million in costs in fiscal 2023 from the job cuts and other changes, while incurring charges of around $15 million to $20 million in the fourth quarter.
Stitch Fix also forecast net revenue between $485 million and $495 million for the fourth quarter, compared with estimates of $495.1 million.