StockX today laid off a substantial portion of its workforce as it looks to continue to grow and invest in “long-term sustainability,” a statement said.
The company confirmed a total of eight percent of employees were impacted by the layoffs, although it isn’t specified which departments were affected. Additionally, StockX confirms that those let go received severance packages and will have temporary health benefits following their terminations. News of the cuts was first reported by Sole Retriever.
StockX’s last noteworthy round of layoffs came in April 2020 just as Covid began to surge. That amounted to 12 percent of employees (confirmed to be over 100 people at the time) across product, quality assurance, engineering, and operations in both its Arizona office and Detroit headquarters. Those employees were provided health benefits through October 2020.
StockX issued the following statement on today’s layoffs:
“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.”
As of writing, StockX is currently defending itself against a lawsuit from Nike over the resale platform’s alleged trademark-infringing NFTs along with claims of allowing counterfeits to pass through its authentication process.