StockX lays off 8% of workforce

Myesha Johnson
The Detroit News

StockX confirmed Wednesday it has laid off 8% of its workforce, citing the impact of "macroeconomic challenges" on its web-based shoe resale business.

The Detroit-based company did not disclose the number of employees let go; its website says StockX has more than 1,500 employees, which would put the number of layoffs at 120 or more.

Employees work in StockX headquarters in Detroit.

"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," the company said in a statement.

StockX is offering severance pay and health care coverage for an undisclosed time to the laid-off employees.

The company's business surged at the onset of the COVID-19 pandemic in 2020; it reported having its highest sales months in company history in May and June that year. However, inflation that's running at a four-decade high is showing signs of affecting consumer spending.

"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," the StockX statement said. "However, effectively navigating today’s reality requires investment in long-term sustainability."