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Blue Apron is laying off hundreds of workers

Oct 19, 2017, 02:50 IST

Blue Apron

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On Wednesday, Blue Apron laid off 6% of its total workforce, the company announced in a filing.

The meal service delivery kit company had more than 5,000 employees across corporate offices and fulfillment centers when Blue Apron went public in June. Using these figures, the company would have laid off roughly 300 employees on Wednesday.

"A company-wide realignment, like the one we announced, is always painful, and especially so for a close-knit team like ours," CEO Matt Salzberg said in a letter to employees on Wednesday.

Salzberg continued that the lay offs are part of a "roadmapping and reprioritization exercise," in which Blue Apron identified the need to reduce certain roles and streamline decision making.

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Blue Apron did not respond to Business Insider's request for comment.

In August, news broke that the food kit company had laid off 14 members of the company's recruitment team. The company also temporarily halted hiring of salaried employees, though it is said it was continuing to hire hourly fulfillment center workers and some corporate positions.

Blue Apron has struggled since its disappointing IPO in June.

When Amazon filed a trademark application on July 6 for "prepared food kits," Blue Apron's stock sank 11%. And, earlier in August, its stock dropped 5% after news broke that the company could cut 1,207 positions at its Jersey City, New Jersey, facility, though Blue Apron said employees would have the chance to transfer to a new warehouse.

"We have accomplished so much together over the past five years, and no words can adequately describe my appreciation for the work you do every day," Salzberg wrote in Wednesday's letter. "I'm confident that the changes we made today will make our organization stronger and help us continue to improve the lives of our customers across the country."

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