Online clothing retailer Stitch Fix is laying off 1,400 California employees and instead hiring in lower-cost cities like Austin and Minneapolis

Business 2020/6/5

Online clothing retailer Stitch Fix is laying off 1,400 California employees and instead hiring in lower-cost cities like Austin and Minneapolis

An employee can be seen sorting through returned clothing at one Stitch Fix´s warehouses, in South San Francisco.

Nick Otto for the Washington Post/Getty Images

  • Online personal styling retailer Stitch Fix is laying off 1,400 California employees, or about 18% of its total workforce.

  • The employees affected can stay with the San Francisco-based company if they relocate — Stitch Fix will start hiring for 2,000 positions in lower-cost cities this summer.

  • The company said the layoffs are not related to the pandemic, but the public health crisis has dealt a blow to the retail industry.

  • California companies have looked elsewhere to expand since before the pandemic set in due to the state´s high operating costs.

  • Visit Business Insider´s homepage for more stories.

Stitch Fix, the personal styling retailer, is laying off 1,400 employees in California, or roughly 18% of its total 8,000-person workforce.

Originally reported by The Wall Street Journal, the San Francisco-based company said the layoffs will begin now through September, but the stylists affected will also be able to stay with the company if they relocate. According to the Journal, Stitch

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