Online subscription-based styling service Stitch Fix will cut 558 jobs over the next several months as it closes its Dallas distribution center known internally as The Dizzy.
Layoffs will begin Dec. 1 and continue in six phases until April 5, 2024, the expected final day the distribution center will be open, according to a notice the company filed with the Texas Workforce Commission.The San Francisco-based company is reeling from declining sales and customers, forcing it to scale back on its fulfillment centers nationally.
The company’s letter, required under federal law when companies intend to make mass layoffs, said it first informed Dallas employees in June of its plan to close the distribution center. It’s reducing its original five-distribution center network into three in Atlanta, Indianapolis and Phoenix. Another 150 to 200 employees will be hired at those locations, the company said.It’s a move that’s expected to save the company $15 million, according to founder and former interim CEO Katrina Lake.
The company’s fourth-quarter report shows it is bleeding customers with about 3.3 million active clients, a 9% drop from last year. It’ll lose an additional 180,000 customers in the U.K. when it. Irving is a business writer for the Dallas Morning News. He's previously served as an environmental reporter for Bridge Michigan, a writer for Automotive News, and a sports editor for the South End.
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