Stitch Fix will be facing major changes in operations as the company announced the firing of around 20 per cent of its workforce. Also, its Chief Executive Elizabeth Spaulding has stepped down from her role. 

Meanwhile, Stitch Fix’s founder and former Chief Executive Officer, Katrina Lake, will take over as the new CEO on an interim basis.

"It is now time for a new leader to help support the next phase. With that context, the Board and I have made the difficult decision that I will step down as CEO," Ms Spaulding said as per media reports. 

On Thursday, Lake revealed the company will be cutting the size of its workforce. Not only this, but Stitch Fix will also be closing its Salt Lake City distribution centre due to soaring inflation and other macroeconomic pressures.