In an effort to get “closer to profitability,” meal kit company Blue Apron has laid off 6% of its staff.
Specifics haven’t been released, but sources say that up to 300 people may have been cut — and the move is going to cost the company around $3.5m in severance payments.
These layoffs come after a tough few months
The company’s had a rough go in the past few months. Since their IPO in late June, they’ve watched their stock price plummet by 43%, from a debut of $9.34 to $5.27.
In the face of new competition from the likes of Amazon and Plate, their revenue took a $31.6m hit in the second quarter.
And it gets worse…
Back in August, Blue Apron was hit with multiple shareholder lawsuits for misleading investors about its business prior to going public.
The company purportedly withheld knowledge of Amazon’s meal kit concept until after the IPO — and now, investors want their money back.
So, in a certain distorted way, maybe the employees who are being let go are getting out at the right time.