Sneaker marketplace StockX has revealed that it will be laying off 8% of its workforce.
The company confirmed the news on Tuesday, citing macroeconomic challenges impacting the global economy and consumer behavior, which has created the need to pivot and adapt to the changing needs of customers.
Those impacted by the layoff are expected to receive severance packages and health benefits for an unspecified period.
The company’s decision to lay off employees also comes at a time when its business is still in growth mode.
“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.
“As a result, we made the difficult but prudent decision to reduce our workforce.”
Earlier this year, the company announced its plans to go public within the first half of 2022, less than a year after it raised $255 million in funding, which increased its valuation to $3.8 billion. The company’s IPO plans are reportedly still underway.
“Today, we’re focused on growth and execution, which includes global expansion, category diversification, and continuing to invest in technology and innovation around product authentication,” a StockX spokeswoman said in a statement to BoF in January 2022.
Nike also escalated its feud with StockX in May 2022, asking a federal judge to allow the company to add counterfeiting and false advertising claims to the current trademark-infringement lawsuit against the marketplace, which promises to sell only authentic footwear.