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Stitch Fix, an online personal styling service, has announced it will reduce the size of its workforce by around 20%, alongside news that its current CEO, Elizabeth Spaulding, is stepping down from the group.
As well as reducing its workforce, the group also announced plans to close its Salt Lake City distribution centre.
Following Spaulding’s departure, founder and former CEO Katrina Lake will step in as interim CEO, a position she will hold for six months or until a successor is appointed.
Spaulding said: “Stitch Fix continues to embark on an ambitious transformation and in the immediate term, the focus for the team is squarely on creating a leaner, more nimble organisation to set the company up for a return to profitability. First as president and then as CEO, it has been a privilege to lead in an unprecedented time, and to chart the course for the future with the Stitch Fix team.
“It is now time for a new leader to help support the next phase. With that context, the Board and I have made the difficult decision that I will step down as CEO. I am proud of the new leadership team we have built, the evolution in culture we’ve created, and the products we’ve shipped. More than anything, it is a privilege to serve our clients and create many delightful moments in their lives.”
In a statement, Lake said: “Effective today, I will be stepping in as interim CEO and leading the search process for our next CEO. Despite the challenging moment we are in right now, the board and I still deeply believe in the Stitch Fix business, mission and vision. We know because of the hard work and foundation laid by this team that there is a great future available for this company and we are committed to getting the company on a path to achieve it.”
