Major challenges ahead for the resale platform.
Over the past few years, StockX has taken over the secondary sneaker market. One of the industry's most popular resale platforms, the company is currently valued at just under $4 billion, based on its most recent round of financing. With that said, it looks like major challenges could be just around the corner for the Detroit-based marketplace as we get news that StockX will be doing its second round of layoffs for 2022.
In June of this year, StockX laid off 8% of the company's total workforce due to "macroeconomic challenges" that were affecting the business. Now a report from an internal source confirms that this layoff comprises nearly 5% of the workforce. According to StockX, the team members impacted were provided severance packages, health benefits, professional outplacement services, employee assistance plan (mental health support), extended stock option exercise window, 401K match vesting and the option to keep company laptops. To handle the holiday season the company plans on expanding some teams to support peak season, and making several key hires to support these shifts and added investment.
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StockX's official statement regarding November 2nd Layoffs
"Our business is multifaceted and continues to evolve, as does today’s market. We actively manage our business and regularly evaluate our strategic priorities to set StockX up for long-term success. We made adjustments to some of our corporate teams today to align with our current organizational priorities.
While macroeconomic trends require businesses to be nimble, our vision of being the trusted global platform for consuming and trading current culture is as certain as ever. We thank the many team members who have contributed to this effort."