Sneaker Resale Platform StockX Cuts Staff
Online sneaker resale platform StockX is facing a slew of troubles, from layoffs to lawsuits, reports Footwear News. Last week, the company laid off 8 percent of its workforce, saying that it needed to adapt and pivot its business to keep up with “macroeconomic challenges” that are impacting the economy and its business. According to an email from CEO Scott Cutler to employees, which was viewed by Footwear News, StockX has taken measures to reduce costs by prioritizing existing investments, reducing discretionary expenses, placing limits on new hires, and improving efficiency in the company’s trade process.
Total Retail's Take: StockX, which hit a valuation of $3.8 billion in April 2021, was widely considered a standout among retail tech winners throughout the pandemic. And while the company continues to soar in valuation, the health of the organization is now in question. This isn’t StockX’s first round of layoffs, either. In April 2020, StockX cut 12 percent of its workforce to “ensure long-term sustainability.” The company also faces legal challenges, namely from Nike, which alleged trademark infringement in the NFT space and sales of counterfeit goods.
There's strong demand for luxury goods and continued interest in resale among consumers, so StockX isn't facing a lack of purchase potential. And as of January, the company was rumored to be on track to launch an IPO in the first half of 2022. The company needs to right-side itself internally, as well as rid itself of legal issues, to be able to take advantage of the surge in the sneaker resale market, and get back on course for growth.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.