Australia-based SurfStitch Group Ltd. said it plans to eliminate 40 positions at Irvine-based subsidiary SurfStitch USA Inc.
The online retailer, which focuses on action sports apparel and hard goods, has lost more than 80% of its value since November, when its shares traded at about $1.49.
“The decision to restructure the US operations is part of our focus on returning to profitability and being cash-flow positive during FY17,” Chief Executive Mike Sonand said in a statement. “Where required, we can support US customers from both our UK and Australian operations, with a much lighter local presence and without compromising on service.”
President of North American Operations Lex Pedersen said his staff remains “confident in the potential of the US market and this restructure will allow us to become a leaner, more efficient and more agile organization that does not have to compete on margins. Instead we can focus on providing customers with an enriched online experience.”
SurfStitch employed about 66 at its office and warehouse in Irvine. It said the cuts will be completed by the end of October.
—Mediha DiMartino
