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Stitch Fix to lay off around 1,400 US employees

By Huw Hughes

3 Jun 2020

Business

American online styling service Stitch Fix has reportedly cut around 1,400 jobs, or around 18 percent of its total staff.

The San Francisco-based firm notified its California-based stylists on Monday that they would be losing their jobs, The Wall Street Journal reported.

Most of those layoffs will happen in September but those affected will reportedly have the chance to relocate and stay with the company.

Beginning in the summer, the company will be hiring about 2,000 stylists in less pricey areas such as Dallas, Pittsburgh, Cleveland, Minneapolis and Austin, Texas.

In its most recent Q2 results published in March, Stitch Fix reported a 22 percent increase in net revenue to 451.8 million dollars, coming in below analysts' expectations of around 452.6 million dollars.

The company cited heightened promotional activity resulting in lower-than-expected order values.

It now expects full-year revenue to be between 1.8 and 1.84 billion dollars, down from a previous estimate of between 1.9 and 1.93 billion dollars.

Photo courtesy of Stitch Fix