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Stitch Fix shares sink after company announces layoffs, offers weak guidance

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The Stitch Fix logo on a smartphone arranged in Hastings-on-Hudson, New York, U.S., on Saturday, June 5, 2021. Stitch Fix Inc. is scheduled to release earning on June 7.
Tiffany Hagler-Geard | Bloomberg | Getty Images

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.

“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.”

The roughly 330 people were notified of the cuts on Thursday morning, the memo said. That number represents about 4% of the company’s overall workforce.

Stitch Fix is set to report fiscal second-quarter results after the market close.

Shares of the company were down about 4% Thursday. The stock is down about 55% year-to-date.

This story is developing. Please check back for updates.

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