Blue Apron laying off 10% of corporate workforce
Blue Apron says it's trying to be a 'more nimble, focused organization'
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Blue Apron announced Thursday that it's laying off 10% of its corporate workforce in order to reduce expenses and streamline operations.
"To create a more nimble, focused organization and to better align internal resources with strategic priorities, Blue Apron is streamlining its personnel this week," the New York-based meal kit company said.
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Blue Apron, which launched in 2012, says its plan to reduce marketing, consulting and labor spend in 2023 will help it cut costs while also streamlining decision-making and its organizational structure.
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The company expects to incur $1.2 million in employee-related expenses as a result of the workforce reduction. The company says it expects to recognize these expenses in the fourth quarter of 2022.
ABlue Apron box waits to be opened on a kitchen counter on June 28, 2017 in Boston, Massachusetts. (Scott Eisen/Getty Images / Getty Images)
Due to funding uncertainty from affiliates of investor Joseph Sanberg, the company also pulled back on its full-year revenue growth forecast, Reuters reported.
Blue Apron's announcement comes on the same week that BuzzFeed and PepsiCo announced they are slashing their workforces amid the uncertain economic environment.
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Amazon, Apple, Meta Platforms, Lyft and Twitter are among technology companies announcing hiring freezes or layoffs, with Amazon possibly reducing its workforce by as many as 20,000.
Blue Apron Holdings Inc. signage is displayed during the company's initial public offering (IPO) outside the New York Stock Exchange (NYSE) in New York, U.S., on Thursday, June 29, 2017. (Michael Nagle/Bloomberg via Getty Images / Getty Images)
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Meanwhile, DoorDash announced cuts last week alongside several media giants. Hundreds of industry staffers were laid including those who worked for CNN and Gannett, company that owns dozens of local media outlets along with USA Today.