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Stitch Fix to lay off 15% of salaried positions due to soaring inflation
By Shubhangi Mathur - Jun 09, 2022, 07:01 PM ET
Last Updated - Jul 18, 2023, 05:00 PM EDT
• The company expects to save between $40 million to $60 million in fiscal year 2023
Stitch Fix (NASDAQ: SFIX) said on Thursday it is laying off around 15% of its salaried positions amid soaring inflation and shift in consumer spending.
The company expects to save between $40 million to $60 million in fiscal year 2023 with the job cuts.
The job cuts represent approximately 4% of roles in total.
The company also forecast a disappointing revenue forecast for the fourth quarter of between $485 million and $495 million, a 15% decline from prior-year levels.
Shares of the company plunged nearly 11% on Thursday, closing at $7.78.
Quarterly performance
For the third quarter, Stitch Fix reported a net loss of $78 million, or 72 cents per share, compared with a loss of $18.8 million, or 18 cents per share, a year earlier.
Revenue fell 8% to $492.9 million from $535.6 million a year earlier.
“While third quarter top-line results, as well as active client counts, were largely within our expectations, we know we still have work to do,” said CEO Elizabeth Spaulding.
Picture Credits: Getty Images
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