StockX laid off 8 percent of its headcount, the Detroit streetwear and sneaker marketplace confirmed Wednesday.
The cuts come after Stitch Fix recently shed hundreds of workers while the logistics sector has been slashing payroll to gird against a possible—and potentially even probable—recession.
Despite raising $690 million to date including an April funding round last year that pegged its valuation around $3.8 billion, StockX is feeling the chill settling into the consumer market, thanks to inflation causing people to think twice about spending on anything beyond gas and groceries. Billing itself as a place where consumers trade “current culture products,” StockX could face an uphill battle convincing people to buy nice-to-haves like premium sneakers and hype-heavy fashion drops when they’re watching their spending power shrink.
As a result, the company said it’s making “adjustments” to its roughly 1,500-strong headcount in the face of “macroeconomic challenges” affecting “businesses of all shapes and sizes.”
“As a result, we made the difficult but prudent decision to reduce our workforce,” it added. “Parting with team members is never easy, particularly when those team members are people who are passionate about their work and committed to delivering on our brand promise each and every day. However, effectively navigating today’s reality requires investment in long-term sustainability. We are grateful for the contributions of those impacted and are working to ensure they are supported in this time of transition.”
The layoffs were confirmed just days after the marketplace hosted its fifth annual, and second all-digital, StockX Day, running from June 20-24 with special product drops and Twitter and Discord-hosted conversations centered on topics including gaming and skate culture. Giveaways put Union x Air Jordan 2s and New Balance 550 sneakers in the hands of a fortunate few.
StockX has also been busy battling a Nike lawsuit claiming the Swoosh brand bought counterfeit sneakers on the former’s platform. The resale giant questioned Nike’s claims in the lawsuit, which originally took aim at StockX’s use of NFTs.
“Despite numerous opportunities to offer feedback or criticisms, at no time in the past did Nike express concerns to StockX about its authentication processes,” StockX wrote earlier this month. “The motive behind Nike’s new-found litigation position is suspicious at best.”
Despite the recent turmoil, the company has invested in software to strengthen its platform and “unlock economic opportunity” for its community of sellers, CEO Scott Cutler said in a November statement announcing StockX’s acquisition of Scout, an inventory management platform.
“With the addition of this new technology, we’ll help our customers accelerate their businesses like never before,” he said of Scout, which aims at helping sellers improve their experience and scale their activities on StockX.
At the time, Cutler said the Scout deal was “one of many investments” StockX had on deck to serve its user base. It’s unclear whether the company will pursue any new acquisitions or investments in light of the layoffs.
StockX offered terminated staff severance packages and health benefits for a limited period of time after their employment ended. The company declined to comment on which roles were affected by the cuts.