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Stitch Fix lays off 6% of its workers, CEO steps down

An employee uses a computer and scanner on top of a cart to pull clothing at one Stitch Fix’s warehouses on Aug. 16, 2018. | Nick Otto for the Washington Post | Source: Nick Otto for the Washington Post/Getty Images

Stitch Fix, a direct-to-consumer styling service, announced plans Thursday to lay off 20% of its salaried workforce. Founder Katrina Lake will immediately replace the brand’s current CEO, Elizabeth Spaulding, as the company searches for new leadership. 

The layoffs are expected to impact roughly 6% of the SF-based company’s 7,920 employees, according to SEC filings. Stitch Fix will also close distribution centers in Salt Lake City. 

StitchFix is the latest in a long line of direct-to-consumer companies that flourished during the pandemic, but that now face a new reality as Covid economic conditions shift. Founded in 2011, the company provides personalized styling for customers and sends monthly subscription boxes filled with curated fashion choices. Stitch Fix rose in popularity during the pandemic as consumers turned to at-home solutions for everyday activities like shopping. 

The struggling apparel company joins the mass of tech startups and companies left reeling after poor 2022 returns. 

Salesforce, San Francisco’s largest tech employer, announced a 10% headcount reduction and the closure of some of its offices on Jan. 4. Seattle-based Amazon plans to slash its workforce by 18,000 employees, a blow to two companies once deemed impervious to shifting economic headwinds. And communications software giant Cisco will also cut scores of jobs this year, announcing layoffs that will affect workers at its Milpitas branch. Cisco’s news comes after the company cut 5% of its 80,000 person workforce in 2022. 

Nearly 25,000 San Franciscans across 160 companies were laid off last year.

Correction: A previous version of this story incorrectly stated the percentage of employees of Stitch Fix that were laid off.

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