SF’s Stitch Fix to lay off 1,400 in California

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Online clothing retailer Stitch Fix will fire about 1,400 stylists in California, about 18% of its workforce, and plans to hire outside the state.

The San Francisco-based company employs 8,000 people, including 5,100 stylists who select garments that are shipped to customers each month via subscriptions. Customers can wear and return items or pay to keep the outfits they like.

The Wall Street Journal first reported the news. In an email to The Chronicle, Stitch Fix said it would provide a minimum of two weeks’ wages in severance pay to terminated employees, continue to cover health care and provide recruiting resources. He said that all of the affected designers are offered the opportunity to move. The affected employees are all remote workers throughout California, according to a state filing that did not specify the exact locations.

The redundancies will take place between June and September. The company said it is investing in lower cost centers outside of California – Austin, Dallas, Pittsburgh, Cleveland and Minneapolis – where it plans to hire about 2,000 stylists until 2021.

“We made the very difficult decision to reduce the number of stylists in our styling team in California, as we invest in our other styling centers in the United States and in innovations that will help us evolve our experience at home. ‘to come up. All of our California-based stylists will be offered the opportunity to move to new roles in other states, “said CEO Katrina Lake in a statement. “Any decision that has an impact on our workers and our talents is incredibly difficult, but we think it’s the right thing to do for our business.”



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