Stitch Fix is laying off 15% of salaried positions within its workforce, mostly in corporate roles and styling leadership positions, according to an internal memo that was seen by CNBC.
Shares of the company fell about 8% Thursday, to trade around $7.97. Shares traded as high as $68.15 a year ago.
The job cuts come as the online styling service has been grappling with higher expenses on everything from its supply chain to marketing to labor, and it has also been struggling to onboard new users.
“We’ve taken a renewed look at our business and what is required to build our future,” Stitch Fix CEO Elizabeth Spaulding said in the memo. “While this was an incredibly difficult decision, it was one needed to make to position ourselves for profitable growth.”