By Nathaniel Meyersohn, CNN Business
Online clothing retailer Stitch Fix will lay off 15% of its salaried staff — around 330 employees — amid slowing e-commerce growth across the retail sector.
Stitch Fix, an online styling service launched in 2011, boomed a year ago but has struggled this year as more shoppers head to stores and pull back on their online spending. The company is also facing higher costs.
The cuts come months after Stitch Fix slashed its forecast for the full year and said its active client count was below expectations.
Stitch Fix’s stock has lost more than half its value this year and is now worth less than $1 billion.
In a memo to staff Thursday, Stitch Fix CEO Elizabeth Spaulding said “in light of our recent business momentum and an uncertain macroeconomic environment, we’ve taken a renewed look at our business and what is required to build our future.”
Layoffs at Stitch Fix are part of a broader downturn among many online companies that thrived during the pandemic with people spending more time at home, such as Netflix, Zoom, Peloton and others.
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