Stitch Fix shares sink as company lays off 15% of its salaried positions
The Stitch Fix logo on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. is scheduled to release earning on June 7.
Tiffany Hagler-Geard | Bloomberg | Getty Images
Stitch Fix said Thursday that it is laying off 15% of salaried positions within its workforce, mostly in corporate roles and styling leadership positions, in a bid to trim expenses amid red hot inflation and waning consumer demand for certain items.
CNBC was first to report on the layoffs, which the company confirmed Thursday afternoon as it reported its financial results for the three-month period ended April 30.
Stitch Fix said it expects to save between $40 million to $60 million in fiscal year 2023 with the job cuts. It also anticipates incurring restructuring and other one-time charges of roughly $15 million to $20 million, which will be recognized in its upcoming fourth quarter.
Shares of the company tumbled nearly…
