StockX is in the news again, and this time it’s not about NFT’s or lawsuits.
Insiders confirm that Detroit-based resale marketplace StockX has begun a significant round of layoffs. StockX has confirmed that this round of cuts affected 8% of the company's workforce, and those impacted were provided severance packages and health benefits for an undisclosed time following termination.
This 8% staff layoff is slightly lower than the 12% cut from April of 2020. According to sources, the departments affected are said to include marketing, customer service, engineering, and operations, among others.
Despite the platform’s $3.8 billion valuation in 2021 and rumor to be on the brink of an IPO, the resale giant’s ongoing legal battle with Nike coupled with this round of staff layoffs has many questioning the company’s future trajectory and plans.
StockX Official Statement
As a growing global brand, it is important to adapt and pivot to deliver the highest level of service to the millions of customers we serve around the world. The macroeconomic challenges currently impacting our global economy continue to affect consumer behavior, and hit businesses of all shapes and sizes. StockX is not immune to these challenges, and while our business continues to grow, the current climate calls for us to make adjustments. As a result, we made the difficult but prudent decision to reduce our workforce. 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.