The Stitch Fix logo on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. is scheduled to release earning on June 7.
Tiffany Hagler-Geard | Bloomberg | Getty Images
Stitch Fix is laying off 15% of salaried positions within its workforce, mostly in corporate roles and styling leadership positions, according to an internal memo that was seen by CNBC.
“We’ve taken a renewed look at our business and what is required to build our future,” Stitch Fix CEO Elizabeth Spaulding said in the memo. “While this was an incredibly difficult decision, it was one needed to make to position ourselves for profitable growth.”
The roughly 330 people were notified of the cuts on Thursday morning, the memo said. That number represents about 4% of the company’s overall workforce.
The move comes three months after Stitch Fix cut its guidance for the year.
Stitch Fix’s business is entirely online, was seen as a bright spot during earlier stages of the Covid pandemic, as spending shifted online. Now the company is facing higher transportation costs among other issues as consumers turn more to physical stores while pandemic restrictions ease.
Stitch Fix is set to report fiscal second-quarter results after the market close.
Shares of the company were down about 5.4% Thursday. It’s market cap has fallen below $1 billion, as the stock has fallen about 55% this year.
This story is developing. Please check back for updates.
Read More: Stitch Fix is laying off 15% of its salaried employees, internal memo