Stitch Fix to cut jobs in California, invest in other U.S. states

​Apparel seller Stitch Fix Inc plans to cut jobs in California and invest in other U.S. states where the company would offer new roles to all those affected, Chief Executive Officer Katrina Lake said on Monday.

The restructuring plans include up to 1,400 job cuts in California and the hiring of about 2,000 stylists in other lower-cost locations such as Dallas, Minneapolis, and Austin, Texas, the Wall Street Journal had reported earlier.

Lake, in a brief statement that did not specify details of how many employees would be affected, said the decision was “the right thing to do” for the company that uses algorithms and experts to ship personalized clothing selections to clients.

“All of our California-based stylists will be offered the opportunity to relocate to the new roles in other states,” Lake said, adding that the apparel seller would provide financial help to the stylists, including severance payments, bonuses, and extended healthcare.

Most of the layoffs will happen in September, according to the Journal.