Stitch Fix Inc.
SFIX 6.41%
said it is cutting 20% of the company’s salaried jobs, its second major downsizing in the past year, and that its founder would return to lead the personal shopping and styling service.
The San Francisco-based company said
Elizabeth Spaulding
would resign as chief executive after spending less than 18 months in the role.
Katrina Lake,
who was CEO from the company’s inception in 2011 until July 2021 and has continued to serve as a director, will run the company on an interim basis, Stitch Fix said Thursday.
The new layoff plan comes after the company shed about 330 jobs—or about 4% of its overall workforce—last year as it faced a slowdown in sales, as well as widening losses. A warehouse that the company opened in Salt Lake City in 2021 will be shut, Stitch Fix said.
Stitch Fix is offering departing employees at least 12 weeks of pay, which increases with tenure, according to a company blog post.
Ms. Lake is slated to serve as interim chief for six months or until a successor is appointed, the company said.
Stitch Fix provides personalized shipments of apparel, shoes and accessories. After initially focusing on women’s apparel, the company has tried to expand its client base and the range of products it could offer consumers.
The company in December cut its full-year sales forecast and said its active clients fell 11% year-over-year to about 3.7 million in its fiscal first quarter.
“Despite the challenging moment we are in right now, the board and I still deeply believe in the Stitch Fix business, mission and vision,” Ms. Lake wrote in the company blog post.
Write to Colin Kellaher at colin.kellaher@wsj.com
Corrections & Amplifications
Elizabeth Spaulding had been chief executive at Stitch Fix for less than 18 months before stepping down. An earlier version of this article incorrectly said she stepped down after less than a year on the job. (Jan. 5)
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Stitch Fix Inc.
SFIX 6.41%
said it is cutting 20% of the company’s salaried jobs, its second major downsizing in the past year, and that its founder would return to lead the personal shopping and styling service.
The San Francisco-based company said
Elizabeth Spaulding
would resign as chief executive after spending less than 18 months in the role.
Katrina Lake,
who was CEO from the company’s inception in 2011 until July 2021 and has continued to serve as a director, will run the company on an interim basis, Stitch Fix said Thursday.
The new layoff plan comes after the company shed about 330 jobs—or about 4% of its overall workforce—last year as it faced a slowdown in sales, as well as widening losses. A warehouse that the company opened in Salt Lake City in 2021 will be shut, Stitch Fix said.
Stitch Fix is offering departing employees at least 12 weeks of pay, which increases with tenure, according to a company blog post.
Ms. Lake is slated to serve as interim chief for six months or until a successor is appointed, the company said.
Stitch Fix provides personalized shipments of apparel, shoes and accessories. After initially focusing on women’s apparel, the company has tried to expand its client base and the range of products it could offer consumers.
The company in December cut its full-year sales forecast and said its active clients fell 11% year-over-year to about 3.7 million in its fiscal first quarter.
“Despite the challenging moment we are in right now, the board and I still deeply believe in the Stitch Fix business, mission and vision,” Ms. Lake wrote in the company blog post.
Write to Colin Kellaher at colin.kellaher@wsj.com
Corrections & Amplifications
Elizabeth Spaulding had been chief executive at Stitch Fix for less than 18 months before stepping down. An earlier version of this article incorrectly said she stepped down after less than a year on the job. (Jan. 5)
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8