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Blue Apron Announces 6% Jobs Cut in Company-Wide Realignment

Blue Apron Announces 6% Jobs Cut in Company-Wide Realignment


NEW YORK CITY, NEW YORK
Friday, October 20th, 2017

After working to gain a foothold post-IPO in June, Blue Apron has declared in a regulatory filing that it will be laying off 6% of its workforce, according to Fortune. With a little over 5,000 employees, this could mean approximately 300 employees will be terminated. 

The news comes after Blue Apron has made strategic shifts to utilize new marketing channels, having recently launched its Why We Eat What We Eat podcast last week. According to the report, Matt Salzberg, CEO of Blue Apron, sent a letter to employees regarding the move. 

Matt Salzberg, Blue Apron CEO“A company-wide realignment, like the one we announced, is always painful, and especially so for a close-knit team like ours. Our leadership and Board did not take this decision lightly, and I want to assure you that we believe it was necessary as we focus the company on future growth and achieving profitability,” noted Matt Salzberg, CEO, in the letter. “The actions that we took today flowed from the roadmapping and reprioritization exercise that we recently undertook. As part of that work, we identified the need to reduce some roles, open others, and streamline decision making for greater accountability. Wherever possible, we sought to fill new roles with existing employees.”

A Blue Apron Meal Kit

This move comes following the announcement of European meal kit competitor HelloFresh's plans to execute its own IPO at $1.8 billion.

How will the meal kit model continue to fare as companies make strategic shifts in the industry? Deli Market News will bring you the latest.

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