Blue Apron Faces Layoffs After Lukewarm IPO

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On Wednesday, Blue Apron announced it will be implementing “a company-wide realignment of personnel to support its strategic priorities.”

Since going public in June of this year, Blue Apron has been hard at work fixing operational issues in order to grow subscriber numbers and also please investors’ expectations.

As Foodable reported in August, the first quarter report for Blue Apron revealed a surprising $238 million in revenue, a disappointing $31.6 million in losses, and a decline in subscribers (from 1 million to 938,000 customers) leading to a drop in shares.

Since then, the company has been forced to shrink its marketing budget, laid off 14 recruiters and launched a podcast in an effort to become more of a lifestyle brand around home cooking.

Now, the meal-kit competitor is faced to lay off approximately 6 percent of its staff across both corporate offices and fulfillment centers—  that figure will “probably amount to more than 250 layoffs” according to “TechCrunch.”

In a note to employees, Blue Apron CEO Matt Salzberg emphasized how painful it was to announce the company-wide realignment and assured employees that the decision was not taken lightly as it was necessary to ensure the future growth and profitability for the company.

Blue Apron is facing concerns from investors ever since the Whole Foods acuisition by Amazon was announced the same month the meal-kit company went public, presenting itself as a large threat to the business.

The logistics giant has slowly expanded its footprint in the food market, first through initiatives like AmazonFresh, then by experimenting with checkout-free grocery stores like Amazon Go, and most recently through partnerships with food-ordering leaders like Olo after the major purchase of Whole Foods Market.

Blue Apron not only has to worry about Amazon, but also other meal-kit competitors, like the Berlin-based cooking kit delivery company HelloFresh— which has plans to go public in the Frankfurt Stock Exchange, as recently reported by “TechCrunch.”

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