Blue Apron Announces Another Round of Layoffs, 300+ Employees Burned

iStock.com/Dmytro Lastovych

Blue Apron Holdings Inc (NYSE:APRN) has burned another 300 employees. The company announced in an SEC filing that it is cutting six percent of its staff. The company said it has 5,400 employees; a six-percent cut translates into more than 300 workers.

The meal-kit company said the layoffs will hit both those in the corporate offices and fulfillment centers. However, it has not disclosed neither the exact number of cuts or a breakdown between corporate and warehouse job losses.

Blue Apron said it expects to incur $3.5 million in expenses in the fourth fiscal quarter.

In an employee letter disclosed in the corporate filing, Blue Apron CEO Matt Salzberg said that the layoffs are necessary, “as we focus the company on future growth and achieving profitability.”

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The New York City-based company has had a turbulent time since going public in June of this year. There are concerns about how Amazon.Com, Inc.’s (NASDAQ:AMZN) $13.7-billion acquisition of Whole Foods Market, Inc. will impact Blue Apron. There are fears that Amazon could roll out a meal delivery service using Whole Foods. Amazon’s massive infrastructure could prove to be too daunting for a small company like Blue Apron.

In August, less than six weeks after its initial public offering, Blue Apron announced it was eliminating almost a quarter of its staff–1,270 workers–in an effort to shore up its finances. All of the job losses came from the company’s Jersey City warehouse facility.

On August 10, Blue Apron announced that second-quarter revenue increased 18% year-over-year to $238.1 million, driven by an increase in orders and 23% year-over-year increase in customers. That said, customers declined nine percent quarter-over-quarter. The second-quarter net loss came in at $31.6 million, or $0.47 per share, an improvement over the first-quarter loss of $52.2 million.

Since going public, Blue Apron’s share price has, for the most part, been in retreat. Currently trading at $5.10, Blue Apron’s share price has lost roughly 50% of its value.

Blue Apron may be good at generating sales, but that hasn’t translated into profitability. Blue Apron will announce its results for the third quarter on November 2.

 

Sources

Blue Apron Holdings Inc.” United States Securities and Exchange Commission, October 18, 2017.

W.A.R.N Notice – August 2017” New Jersey Department of Labor and Workforce Development, last accessed August 4, 2017.

Blue Apron Holdings, Inc. Reports Second Quarter 2017 Results,” Blue Apron Holdings Inc, August 10, 2017.

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Categories: Job Cuts, News

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