// Stitch Fix Inc is reducing its workforce by around 15% of salaried positions,
// Most of the reductions are in non-technology corporate roles and styling leadership roles
The online styling platform Stitch Fix has revealed plans to cut 15% of its salaried workforce as losses widened and revenues dropped in the third quarter.
The layoff at Stitch Fix accounts for nearly 4% of the roles, around 330 positions in total, with most of them in its non-technology corporate and styling leadership roles, CEO Elizabeth Spaulding said.
In the three months ended April 30, the business made a net loss of $78 million, compared to a loss of $18.8 million a year earlier.
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It came as its net revenue fell 8 percent year-over-year to $492.9 million as its active client count dropped by 5%.
The company said it now expects to save $40 million to $60 million in costs in fiscal 2023 from the job cuts and other changes, while incurring charges of around $15 million to $20 million in the fourth quarter.
Stitch Fix CEO Elizabeth Spaulding said the third-quarter results were “largely within expectations”, but added “we still have work to do”.
She said: “This quarter we made progress on improving the overall client experience in order to position Stitch Fix for profitable growth and value creation over time.
“We are encouraged by the activity we are seeing inside the expanded Stitch Fix ecosystem, including our sixth consecutive quarter of revenue per active client growth.”