Stitch Fit (NASDAQ:SFIX) saw its shares inch up Tuesday, a day after the online retailer and wardrobe styling service said it would lay off 1,400 stylists in California between now and the end of September. The cuts affect about 18% of its workforce.
At Stitch Fix, stylists pick out clothing and accessories that the company ships to customers as part of a monthly subscription service. Customers can wear and return items, or pay to keep the ones they like the most.
In March, Stitch Fix had to close two of its distribution centers, one in California and another in Pennsylvania, temporarily to comply with COVID-19 health orders. In April, the company withdrew guidance for the third quarter and fiscal year 2020 because of uncertainty amid the pandemic.
Stitch Fix said Monday that it plans to eventually hire 2,000 stylists in U.S. locations which have a lower cost of living than cities in California - places like Austin, Texas, or Minneapolis.
The company will be hiring stylists outside of California starting this summer and continuing into 2021, a spokesperson said, and laid off stylists will have the chance to relocate and continue working.
Stitch Fix said Monday that it plans to eventually hire 2,000 stylists in U.S. locations which have a lower cost of living than cities in California - places like Austin, Texas, or Minneapolis.
The company will be hiring stylists outside of California starting this summer and continuing into 2021, a spokesperson said, and laid off stylists will have the chance to relocate and continue working.
Shares added but seven cents to $23.69.
