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Stitch Fix (NASDAQ:SFIX), the online personal styling company, will lay off 15% of its salaried employees, according to CNBC.
The employees being laid off are mostly in corporate and styling leadership positions, according to the report, which cites an internal memo.
Stitch Fix shares, which have already plunged over the last 12 months, are down a further 8% Thursday following the news.
Supply chain issues and higher prices across marketing and labor have hit the company this year, while it has also struggled to attract new users.
CNBC reported that Stitch Fix CEO Elizabeth Spaulding said in the memo that they have “taken a renewed look” at their business. “While this was an incredibly difficult decision, it was one needed to make to position ourselves for profitable growth,” Spaulding reportedly wrote.
Approximately 330 people were reportedly told of the cuts on Thursday, around 4% of Stitch Fix’s workforce.
Companies from Meta to Peloton (NASDAQ:PTON) are said to be slowing hiring, while in contrast, airlines and restaurants, and hospitality companies are struggling to fill roles.
Stitch Fix is reporting earnings aftermarket today.
