Stitch Fix, which sells clothing online and acts as a personal styling service, is axing 1,400 jobs in California as it moves to hire staff outside the state.

Stitch Fix stylists select clothing and accessories for subscribing customers.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The company withdrew guidance for its third-quarter and full-year last month due to uncertainty surrounding the coronavirus pandemic. It had previously closed two distribution centres in the US in compliance with Covid-19 health orders.

But the decision is understood to be part of on-going reviews undertaken into the efficiency and impact of the business since California is increasingly expensive and complex to operate in.

Stitch Fix employs 5,100 stylists. 1,400 roles in California will be impacted as the company invests in styling hubs in Austin, Dallas, Pittsburgh, Cleveland and Minneapolis where it expects to relocate/hire about 2,000 stylists throughout 2020/21. 

See Also:

All impacted stylists are being offered the opportunity to relocate.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Katrina Lake, founder and CEO of Stitch Fix, said: “We have taken the very difficult decision to reduce the number of stylists in our styling team in California, as we invest in our other styling hubs across the US, and the innovations that will help evolve our experience in the future.

“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. We are committed to supporting our people through this by providing as much financial stability as possible, including severance payments that increase with tenure, bonuses for stylists staying with us during the transition period, extended healthcare and recruitment resources.  

“Stitch Fix was built one relationship at a time, and our stylist community is an increasingly vital part of the Stitch Fix experience – one we believe gives us the ability to engage with our clients in a deeply personal way, especially now when empathy and human connection are more important that ever.”

Last year, the company acquired the technology and IP of digital wardrobe platform Finery, which aims to help consumers style clothes they already own by using shopping receipts to “build” a wardrobe.