StockX, an online store that sells athletic shoes, said on Tuesday that it would lay off 8% of its employees because of the bad economy.
“The macroeconomic problems that are affecting our global economy right now continue to change how consumers act and hurt businesses of all sizes,” CEO Scott Cutler told his staff in an email. StockX can be hurt by these problems.
In addition to being a marketplace for clothes, trading cards, and tokens that can’t be exchanged for cash, the company’s main purpose is to give resellers a place to trade rare or desirable shoes. In 2021, StockX was worth $3.8 billion, and the company has thought about going public.
Some of the most successful shoe stores in the country said that the epidemic was good for business because the US government’s stimulus measures gave people more money to spend.
StockX will lay off 12% of its workforce in April 2020 to save money. Its website says that it has more than 1,500 employees, and most of them are in charge of certifying shoes to make sure that they don’t sell fake goods.
Nike has sued StockX, saying that the marketplace made it possible for fake shoes to be sold.