The coronavirus pandemic continues to impact businesses across the United States, and StockX has been no exception.
According to the Business Insider, the sneaker and streetwear marketplace has seen its fair share of complications, including workers raising safety concerns, an overload of products in authentication centers, and several employees testing positive for COVID-19.
On March 23, StockX COO and co-founder Greg Schwartz announced via email to its employees that its main authentication center in Detroit would remain open despite the executive "Stay Home, Stay Safe" order issued on March 24 by Michigan's governor that suspended operations by non-essential businesses. However, Business Insider says, the company eventually did decide to close its Detroit center on March 25.
Naturally, this led to an increase in volume in its other centers, and employee fears that the company is more focused on profit than their well-being. It's reported that a total of seven employees have tested positive for the virus, but operations continue in the authentication centers across the country.
Last week, the platform internally announced plans to lay off 12 percent of its workforce, which is at least 100 employees in its quality-assurance, engineering, product, and operations teams at both its Detroit headquarters and Arizona office. The layoffs are part of an effort to cut costs within the company.
StockX did not immediately respond to Complex's request for comment on the report.
UPDATE (9:00 p.m. ET): StockX has issued a statement on social media in response to Business Insider's claims.
"Today, a sensationalist article was published with a misleading headline that prioritized click-throughs over actual reporting. The truth, which is buried in the article (and behind a paywall) is this: the health and safety of our team has always been and always will be our top priority," reads the statement. "In a situation where information was fluid and fast-evolving, we acted swiftly and decisively to safeguard the welfare of our team members. And it's because of these dedicated team members during this extraordinary time, that our global marketplace remains open, stable, and strong."
In addition to the formal statement, StockX has directed parties to its COVID-19 authentication safety guidelines, which were last updated March 30.
