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Blue Apron Laying Off Employees

blueapron layoff 101917

Less than four months after its debut on the New York Stock Exchange, Blue Apron Holdings Inc. (APRN) said it is laying off 6 percent of its workforce.

In a regulatory filing on Wednesday, the embattled meal-kit delivery company said it has implemented a company-wide realignment of personnel to support its strategic priorities.

This realignment resulted in a reduction of about 6 percent of the company's total workforce across both its corporate offices and fulfillment centers.

Blue Apron has said it has more than 5,000 employees. A 6 percent reduction in the workforce equates to about 300 employees.

Blue Apron expects to incur employee-related expenses of about $3.5 million, primarily consisting of severance payments, substantially all of which will result in cash expenditures. The company anticipates incurring such expenses during the fourth quarter of 2017.

In a letter to the company's employees, Blue Apron CEO Matt Salzberg said that a company-wide realignment is always painful, but was necessary as part of the focus on the company's future growth and profitability.

In August, Blue Apron said it will close its Jersey City facility and and transfer 1,270 jobs to a new facility located in Linden, New Jersey later this year.

The company noted that employees at the Jersey City facility will be given an option to transfer to the new Linden location, but if they choose not to accept, their employment will be terminated in October.

Blue Apron's stock has been struggling ever since its debut on the NYSE in June due to the potential entry of Amazon.com Inc. (AMZN) into the meal-kit delivery business following its $13.7 billion acquisition of Whole Foods.

The company's stock is down nearly 47 percent since its IPO.

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