Stitch Fix Inc. does the cutting About 15% of jobs are salaried as part of a plan to return to profitability.
shares Online personal design services company 16% after hours.
Revenue in the quarter ending in April was down 8% from a year earlier.
company Expected net revenue Between $485 million and $495 million for the fourth quarter, compared with estimates of $495.1 million, according to Refinitiv data.
layoffs calculation for approximately 4% of the company’s total workforce, or about 330 jobs in total.
The majority of jobs are in non-tech companies and design roles, according to CEO Elizabeth Spaulding.
“[The decision] Spaulding wrote in a letter to Stitch Fix employees, “We had to do to position ourselves for profitable growth…There will be tough choices along the way, and this is one of those choices.”
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Job cuts and other changes are expected to save $40 million to $60 million in costs in fiscal 2023. The company will also incur $15-20 million in fees in the fourth quarter.
The company lost $78 million in the third quarter of the fiscal year. On a stock basis, the San Francisco-based company said it had a loss of 72 cents, which is more than the expected loss of 57 cents a share.
Reuters contributed to this report.
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