Stitch Fix is laying off close to 330 positions, or 15% of salaried roles, the company announced Thursday.
The layoffs represent 4% of the company’s roles and are mostly concentrated in non-technology corporate positions and styling leadership roles.
In a public memo sent on Thursday to employees, CEO Elizabeth Spaulding announced the layoffs that she said were partly a result of the company’s business perfomance and “an uncertain macroeconomic environment.”
“While this was an incredibly difficult decision, it was one we needed to make to position ourselves for profitable growth,” Spaulding wrote. “We are in the midst of a transformation and we know not every day or every moment will be easy. There will be tough choices along the way, and this is one of those.”
She added that the e-tail firm plans to improve the client experience, broaden its offerings and invest in technology and product.
Stitch Fix, which offers stylist-curated boxes of clothing and accessories to subscribers, launched in 2011 and went public in 2017. On Thursday, it also reported results for the third quarter, recording a net loss of $78 million, or 72 cents per share. Revenue dropped 8% to $492.9 million. The company issued a weak outlook for Q4 and expects revenues to be between $485 million and $495 million, which would represent a 13% to 15% decline from last year.
A few months ago, Stitch Fix cut its full-year forecast, citing fewer-than-desired new client acquisitions and conversions.
In a call with investors Thursday, Spaulding shared that the layoffs will be a major factor in helping the company save between $40 million and $60 million.
Stitch Fix shares were down more than 13% by noon on Friday.