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Saturday, 14 January 2023

HR News: 13 Jan, 2023

1.

Stitch Fix reduces its workforce by 20% to manage economic challenges

Katrina Lake, founder, Stitch Fix, informed employees on Thursday that she would be returning to the position of CEO.  On Thursday, Stitch Fix announced that CEO Elizabeth Spaulding would be leaving the company and that it would be laying off 20% of its salaried employees due to economic challenges. The decision was made due to the company’s struggles with low sales, a declining customer base, and a reduced market value. The online retailer of personalized clothing subscriptions also announced that it would be shutting down some of its operations, including a distribution centre located in Salt Lake City. Reportedly, Katrina Lake, founder of Stitch Fix, informed employees on Thursday that she would be returning to the position of CEO. Lake mentioned in her blog post, “I will be stepping in as interim CEO and leading the search process for our next CEO. Despite the challenging moment we are in right now, the board and I still deeply believe in the Stitch Fix business, mission and vision.”

 

2.

Crypto lender Genesis reduces its workforce by 30%

Unprecedented industry challenges have forced Genesis to reduce their headcount globally. These measures are part of the company’s efforts to move their business forward. On Thursday, cryptocurrency trading company Genesis Global Trading laid off a significant portion of its employees, according to a statement given to CoinDesk. The company is reported to have let go of approximately 30% of its workforce, bringing its employee total down to 145. As per CoinDesk, Genesis Global Trading has laid off a significant number of employees, according to a spokesperson for the cryptocurrency trading firm. This move follows a letter that was sent to clients on Wednesday, in which the company mentioned that it would be ‘reducing costs and driving efficiencies’ during a difficult time for crypto firms. Reportedly, the subsidiary of Digital Currency Group (which is also the parent company of CoinDesk), has been affected by the recent market collapse caused by the failure of Sam Bankman-Fried’s FTX exchange. The company also informed its clients that it is currently working on a solution to address the issues at its lending unit and will need more time to implement it.

 

3.

Wells Fargo fires VP for peeing on woman on Air India flight

Shankar Mishra, who was inebriated, peed on a 70-year old female passenger. Shankar Mishra, the vice president of Wells Fargo, India, was fired following his misconduct aboard an Air India flight. On 26 November, 2022,Shankar Mishra was accused of urinating on a female co-passenger, a senior citizen in her seventies, in the business class of an Air India flight from New York to New Delhi, in an  inebriated state. When the incident and the identity of the accused were made public, Mishra’s employer, Wells Fargo, terminated his employment. Mishra was the vice president of the India office of the California-based financial services company, before being fired. “Wells Fargo holds employees to the highest standards of professional and personal behaviour and we find these allegations deeply disturbing. This individual has been terminated from Wells Fargo. We are cooperating with law enforcement and ask that any additional inquiries be directed to them, ” Says the statement issued by Wells Fargo in this regard. On 6 January, 2023, Campbell Wilson, CEO of Air India, gave instructions to the airline’s staff that henceforth, they should immediately inform the authorities of any unlawful behaviour on board, even if the situation at that point of time seems to have been resolved. The airline has been widely criticised by the public, netizens, as well as the DGCA for the casual manner in which the incident was handled.

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