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Breaking: AI startup Stitch Fix to conduct massive layoffs starting this week

Personal administration company Stitch Fix, a aggregation that uses apparatus acquirements to help consumers find clothes they like, is allegedly taking a bold access to aggregation expansion: it’s “significantly reducing” the number of advisers it has so that it can hire people in other states.

TNW acquired a copy of a announcement sent to “Stylists” at the aggregation and accepted its accuracy with absolute sources accustomed with the situation:

According to the memo, the aggregation is laying off stylists in two waves alpha on 5 June and ending on 18 September:

As we grow and want to invest in our other administration hubs around the country, it does not make banking sense to advance a large administration team in California.

Stitch Fix employs 1,424 people as Stylists in California. It’s cryptic how many will remain after the alternative phases but the aggregation says it will create a “small, full-time staff” to abutment its “HQ initiatives.” Furthermore, the aggregation says it will offer assitance to advisers planning to backpack but it appears as though those advisers will have to apply for these new positions.

This comes as a shock to those of us who’ve watched Stitch Fix from the outside, abnormally because it had a $1.6 billion appraisal just a couple of years ago. And the timing couldn’t possibly be crueler: In the middle of a communicable and nation-wide protests, these people will join the 40 actor other US citizens who are currently unemployed, many with less than a week’s notice they’re being laid off.

We contacted Stitch Fix and were given the afterward account from CEO and architect Katrina Lake:

We have taken the very difficult accommodation to reduce the number of Stylists in our administration team in California, as we invest in our other administration hubs across the US, and the innovations that will help evolve our acquaintance in the future. All of our California-based stylists will be offered the befalling to backpack to the new roles in other states. Any accommodation that impacts our accomplished and accomplished people is abundantly tough, but we accept this is the right thing to do for our business. We are committed to acknowledging our people through this by accouterment as much banking adherence as possible, including severance payments that access with tenure, bonuses for Stylists blockage with us during the alteration period, continued healthcare and application resources.

Stitch Fix was built one accord at a time, and our Stylist association is an more vital part of the Stitch Fix acquaintance – one we accept gives us the adeptness to engage with our audience in a deeply claimed way, abnormally now when affinity and human affiliation are more important that ever.

In accompanying news, this examination of the company’s accessible balance letters indicates agitation on the border for Stitch Fix.

Published June 1, 2020 — 21:56 UTC

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