Stitch Fix to Lay off About 1,400 Employees in California
wsj.com
wsj.com
It's like offshoring -- but off-Californiaing.
>“ Most of the layoffs will take place in September and those affected will have the opportunity to relocate and stay with the San Francisco-based company.”
Is that not true? If it is true, how do you relocate a remote worker?
On a more serious note, I know a few companies who do treat their tech people like disposable inventory, on par with the lower-prestige roles, and it works out just fine for them. They don't get highly motivated world-class talent, but they don't need that sort of talent; just someone to take care of their relatively modest IT/dev needs. It's not very efficient across a lot of metrics, but low salaries probably compensate for that.
This seems to be a trend across all sorts of industries, less and less jobs that pay well, less employees that get coddled and treated well, commoditize the hell out of every last role etc. – just because it's not a big thing in much of tech yet probably doesn't mean it's an impossibility.
I think that day is closer than many imagine. If I take out well paying / no physical labor part I am as a Jira slave and daily standup chump are lot closer to warehouse worker than silicon valley type pampered engineer.
A company purpose is to make money, not to take care of its employees.
To think that less than 4 months ago People were ridiculing Andrew Yang and other proponents of UBI. I admit having it be, initially anyway, State sanctioned bothers me a great deal; but the fact is gainful employment is no longer a reliable aspect of modern Life for many in Society. This will continue to cut deeper and deeper, and for anyone not paying attention these protests and riots in the US have a much deeper sense of resentment than just Police Brutality against black males. And it's felt throughout the spectrum of underemployed, highly indebted underclass. Its like the bottled and pent up anger from the Occupy movement coming back.
In many ways this reminds me of the London Riots of 2011, when London police killed a young black male named Mark Duggan [1] and it exposed a myriad of sociological, and socio-economic issues that quite frankly still remain to this day.
1: https://www.washingtonexaminer.com/opinion/three-riot-lesson...
That aside, the idea that you can finance life in the highest cost living areas of the USA as a “stylist” (picking items for a clothing subscription) is lunacy. Clearly that work can be done anywhere and it’s only a matter of time till it’s pushed to the lowest cost areas. I wouldn’t be surprised if the cost of such labor goes to near zero as they attempt to start “paying” people with publicity instead.
It's in quotes with an inline description because, while it's the actual job title for the positions in question, it's also a common English word that in most circles would refer to a "hair stylist".
Ascribing negative intentions to minor punctuation and making up biographies about your fellow commentators says more about your bad taste and biases than mine.
I suppose you think it’s lunacy that hair dressers think they can live in the city as well.
Why not just offer a straight salary cut, since they are already, as you say...remote?
https://www.forbes.com/sites/robertwood/2019/10/22/now-calif...
https://moskowitzllp.com/leaving-california-and-the-franchis...
I don't know about the US, but in France, in large urban areas like Lyon or Toulouse, you can easily find office space for 100 to 200 €/m²/year. Which means, translated in $, that $17k per year would grant you 75 to 150 m² (800 to 1600 sq. ft.).
That would be a very very nice office, far from the shoulder-to-shoulder openspace model, even if you add other expenses than pure rent :-)
Of course, in America rents in NYC and SF are going to drive up the averages by a lot, with companies like FB and Google willing to pay huge amounts for prime real estate and luxury build outs.
So the interesting question for you is: how much are rents in Paris, and how does that affect the averages of France as a whole?
Here’s an article from 5 years ago that showed a $10k per employee per year cost difference between NYC and Dallas. https://www.marketwatch.com/story/heres-how-much-your-compan...
Keep in mind that office prices are going to vary wildly based on location. High rises in the downtown with good access to public transit are going to cost a lot more than an office park that’s just barely within city limits. So these averages per city are going to hide huge standards of deviation.
Haha, tech companies in the Bay Area use open office designs that pack people like sardines. Each employee probably gets closer to 30-50sqft.
Also, the company will be able to save more money since everything is cheaper from taxes to real estate in other states compared to California.
Why wouldn't it be legal?
This is what "Going full remote" post-covid is going to look like for a lot of companies.
I skeptical of most of the tech stuff too -- fewer tech roles require the skillsets/social connections only found a big tech hub than in the past. For many years, IBM was able to run successful tech operations in places like Minneapolis, Austin, Binghamton NY, Hudson Valley NY, North Carolina, Tampa, etc.
The median home price is Pittsburgh is literally 90% less than many California locales. Even with a 40% pay cut, in many professions moving to one of these places will be a neutral in terms of money and probably a positive impact on the employee's quality of life.
Can you give some data around this? 90% seems like a hyperbole. Or are you comparing the most expensive zipcode in the bay area (e.g Atherton) with the cheapest in Pittsburgh?
I can tell you that I live in a small northeastern city, and a 3 or 4 bedroom mid 20th century, single family house is around $130/sqft in a nice neighborhood. In the burbs, it's about $150/sqft. When your mortgage+taxes is <$15k/year, you don't need to make crazy salaries.
I don't know bay area real estate, so looking at Gilroy, CA, which would be a hella commute to SFO, you're looking at $400-450/sqft for 3/4br single family. That's alot of cash.
I've tried StitchFix twice and found their stylists pretty lacking in terms of value they add. They don't listen to your requests and I'm sure most of them just have templates of stuff they send out w/o looking at what you liked / disliked. I'm fairly certain it's a role that can be very easily filled regardless of the Zipcode.
In fact, I was pretty convinced until now that the stylists were just algorithms but it looks like I was wrong.
So I’m guessing by owning the brands themselves they get even higher margins than if they were buying unwanted brands in bulk at a discount. And each of the brands goes for a certain generic style, e.g.: “Even Tide brings the vacation to your closet with a mix of coastal colors and mid-century modern inspired lines.” [1]
Kind of a let down for me as a subscriber, but I still buy quarterly as I’m so bad at picking a wardrobe out on my own.
[1] https://www.stitchfix.com/men/blog/the-service/exclusive-bra...
I thought about applying for their ML positions, because it's definitely an interesting business problem. But I got a strong feeling they don't actually use ML in their product. They're just a retailer after all.
It's almost as if it didn't matter what I put in my requirements, I was going to be given the same stock pack du jour. I even got this heavy winter coat from them that maybe would have made sense in Minnesota, but had no place in the Bay Area. They were not geography-aware at the time, from what I could tell.
Never used them since, it's easier to go into the store myself.
Katrina Lake talks a little about the way they've structured this during her How I Built This interview[1]. They seem to have a pretty large engineering / data science org, and it feels like the stylists are effectively human curators of algorithmic recommendations.
1. https://www.npr.org/2019/09/10/759594143/stitch-fix-katrina-...
Wow!
Most people in first world countries are well above the subsistence level, and much of what they spend their money on isn't useful. It does, however, improve their quality of life. Clothes are no better or worse than my own hobbies, and I suspect, yours.
For some people, buying clothes is a really stressful and difficult psychological process. You really don't know anyone who does not like shopping for clothes and would be willing to buy away that stress from a personal shopper/algorithm ?
Maybe you personally don't find value in that, or your tastes don't agree with Stichfix's style, but it seems quite understandable to me that many people would want this.
VC funding comes down to gut decisions, and I suspect there are a lot of other billion-dollar opportunities out there in spaces that are overlooked by the demographic of wealthy white american males between the ages of 25-50.
One example comes to mind from the recent thread[1] about hiring for older programmers - someone gave an example of an older friend of theirs who started getting substantially more offers once he changed the way he dressed:
> It began with a friend who was in the job market as a 50+. More on the hardware side. This guy has some cool experience. He gets lots of interviews, they go well, but no offers. As his frustration grows, he grows desperate to try something different. He dyes some color back into his hair, gets some tinted glasses, and lets his daughter take him shopping for some more hip interview clothes. A month later and he's in bidding wars for who to hire him. He said the difference was night and day. He was now pointing out his age in interviews "are you sure I'm not too old?" and the interviewers were like "no way man."
In a case like that, fashion has clear social utility and a very real, tangible value to that person.
But being smart, I decided to avoid expressing my skepticism about how she was spending her money. Turns out that for her, it's a great idea. She hates to shop, hates to spend time shopping, but has to look professional for work. Like many women, she's not a size 0, so finding stuff that fits as well as looks good can be a challenge.
With Stitch Fix, they always send the right size. And the styling (as much as I can tell as a dude) looks fine. If you don't like something, you just send it back.
Prices are higher than I would have expected, but again, that's because I'm a dude who buys cheap stuff. Women's clothing is both more expensive, and less sturdy than much of what men wear.
Maybe the stylists really exist to train an algorithm that can replace stylists in the future?
I would be very surprised if an algorithm did not make suggestions that the stylists would confirm, deny or modify.
If that's what their stylists are coming up with then... ew
But I canceled when I very specifically stated in both my profile and my message to the stylist that I did not want any white/tan colored items (I'm fair skinned) or polo shirts (just not my style).
My next order contained a white polo shirt and a tan knit beanie (in the summer!). smdh.
I, too, figured it was just some algorithm dressed up as personal stylists, but knowing that it is actual people just makes it even more unforgivable.
I've received orders from good stylists and bad ones. The bad experiences were exactly as described: my preferences were clearly not read, they specifically picked things I had already rejected on the style-carousel-rating thing. It felt like they just dumped a bunch of excess crap on me. When this happens, the pieces don't even fit right. Very frustrating.
On the other hand, I have gotten shipments that were clearly respecting my requests and preferences. Those interactions absolutely send me over the moon, and make me much more likely to buy something.
Is Canada lower cost than Midwest?
Remote work means anyone can take your job https://news.ycombinator.com/item?id=23337857
The world needs experienced Go developers for an example. Being able to hire one remotely may increase the available pool of Go developers you can hire, but it doesn’t make them cheaper. That’s because hiring remotely also increases the number of employers chasing the same few Go devs.
All states require that you register as a company there and pay taxes.
There are PEOs like Justworks that act as the employer and file taxes for you. But you still have to register first and then assign the company to the PEO.
In short it varies a lot and that doesn’t take into account things like local laws on compensation.
I say this as a founder of a remote-first startup registered in 12 states.
It’s unfortunate because this system encourages hiring remote offshore contractors.
That also doesn't address that it is significantly cheaper for group health insurance in the US vs. individual. As a company I can be paying $400/mo vs. the employee who would be paying $2K for similar coverage.
Unless by stylist they also mean customer care, which they probably do as this article mentions hiring 2k people in lower cost US cities.
https://www.cnbc.com/2020/06/01/stitch-fix-is-laying-off-140...
“I work in an semi-casual office but I want to try adding some new colors to my wardrobe to spice things up. Next month I’m going to a wedding and I need a new bracelet and a pair of gold earrings for that. I don’t need any more scarves this fall but I’d love a nice knitted hat in cool colors. Stripes don’t flatter me.”
And I could go on for a while longer talking about a wide range of clothing choices. Could you give options for all of that? Yes, with some work. Would that be a good user interface that keeps a wide range customers returning? I doubt it.
Plus their user base just prefers at least the illusion of having an individual stylist, so you receive a detailed note with each package talking about the ways that the clothing choices fit your style, wardrobe, body type, and activities.
But I've always wondered about the grouping and parity between stylist and customer. IIRC, they say it in the presentation but they do not say how much bucketing happens. Is Person of archetype-A grouped with 100 other people and given to Stylist A? 1000 other people? Or do they only do additional curation if you reject so many items and write so many input request words?
Also, is there a good track record for such a request like "I need a pair gold earrings" working? and working specifically because of human curation and not pattern matching on color and item description?