StockX Undergoes Another Round of Layoffs

StockX is undergoing another round of layoffs as the company buckles under the pressure of current economic headwinds.

In a statement to FN, StockX confirmed that it made “adjustments” to corporate teams today “to align with our current organizational priorities.”

While macroeconomic trends require businesses to be nimble, our vision of being the trusted global platform for consuming and trading current culture is as certain as ever,” StockX said. “We thank the many team members who have contributed to this effort.”

StockX also said it is evaluating priorities to set itself up for “long-term success.”

The layoffs impacted less than 80 team members, according to other reports of the layoffs.

The new cuts come shortly after StockX laid off affect 8% of the company’s total workforce in June. For this round of cuts, the resale platform’s CEO Scott Cutler told employees in an email that StockX had taken measures to reduce costs by prioritizing existing investments, reducing discretionary expenses, placing limits on new hires and improving efficiency in the company’s trade process.

In the wake of the June layoffs, StockX said that it needed to adapt and pivot its business to keep up with “macroeconomic challenges” that were impacting the economy and its business.

StockX also underwent layoffs in April of 2020, when the company cut 12% of its workforce to “ensure long-term sustainability.” StockX said the number of impacted employees at the time amounted to less than 150. And according to a report in Insider, StockX had quietly undergone two previous rounds of layoffs before its third and largest round on April 23.

The April layoffs came shortly after StockX came under fire on social media for its new 3% processing fee to customers that added to the purchase price of an item. In an email to consumers, the company stated the fee was added so it can continue to make investments into the platform, customer service and the verification process. It went into effect on April 22.As of the conclusion of a $195 million secondary tender offering and an additional $60 million in Series E-1 primary shares in April of 2021, StockX has a $3.8 billion valuation.Meanwhile, StockX continues to hire in other areas of the business. Just last week, the company hired Paul Foley as its head of brand protection focused on verification.

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