San Francisco-based subscriber shopping service Stitch Fix plans to move a large portion of its workforce out of California.
San Francisco’s subscriber shopping service, Stitch Fix, is…
San Francisco-based online styling service Stitch Fix will lay off 1,400 stylists in California by the end of September, affecting 18% of its workforce, according to a statement released Monday. The online retailer said that after the cuts, he would seek to rehire in states at lower cost.
The business model, built around stylists helping subscribers select clothes that are then shipped to customers every month, was one of the few major success stories in the subscription shopping world.
CEO and founder Katrina Lake, who launched the company in 2011, said “all of our California-based stylists will be offered the opportunity to move to new roles in other states.”
The company said operating costs in California are becoming increasingly difficult and plans to hire stylists in other lower-cost states such as Minnesota, Pennsylvania, Ohio and Texas.
The company said the cuts were not directly related to the coronavirus pandemic.
“Any decision that affects our workers and our talents is incredibly difficult, but we think it’s the right thing to do for our business,” added Lake.
The Wall Street Journal originally reported on the company’s plans.
Andrew Chamings is a digital editor at SFGATE. Email: [email protected] | Twitter: @AndrewChamings