Stitch Fix, the San Francisco-based online fashion and clothing subscription service company, is laying off 1,400 of its stylists in California due to what it said is the increasingly high cost of doing business in the state.
The job cuts will be enacted by the end of September, and equal about 18% of Stitch Fix’s 8,000 person work force. The company first announced the layoffs late Monday.
But, while Stitch Fix is reducing the number of employees it has in its home state, the company is planning on boosting its teams of stylists elsewhere in the country. Stitch Fix said it expects to hire close to 2,000 stylists this year and through 2021 for its “styling hubs” in Austin, Texas, Dallas, Pittsburgh, Cleveland and Minneapolis.
Stitch Fix customers submit an online questionnaire about their personal style and fashion choices, and in return, stylists use that information to fill and send back a package with several pieces of clothing. The customer then pays for those items they want to keep and sends back any other items to the company.
Stitch Fix said that the California job cuts are not related to the ongoing coronavirus pandemic, but are part of a review of the company’s overall expenses.
“Any decision that impacts our hardworking and talented people is incredibly tough, but we believe this is the right thing to do for our business,” said Katrina Lake, Stitch Fix’s founder and chief executive, in a statement announcing the job cuts.
Stitch Fix said it will offer its California-based stylists the opportunity to take on new roles in other states, and is offering at least two weeks of severance pay, and other benefits, for employees that don’t relocate.