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Blue Apron said on Wednesday that it was cutting 6 percent of its staff — totaling hundreds of jobs — as the meal-kit company attempts to regain its footing after a turbulent first few months as a public company.
In a letter to employees, CEO Matt Salzberg wrote: “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.”
Blue Apron said in June that it had nearly 5,400 employees, which would suggest more than 300 layoffs. The layoffs will cost about $3.5 million, primarily related to severance, according to the company.
The jobs cuts will affect employees in Blue Apron’s corporate offices as well as workers in some of its warehouses. A spokesperson would not disclose the exact number of cuts nor the breakdown between corporate and warehouse jobs lost.
The company has had a rough go as a public company since its June IPO. Questions about how Amazon’s purchase of Whole Foods would affect its business rattled investors before its debut. Then, in August, the company announced disappointing revenue projections amid a series of setbacks stemming from unexpected problems with a new warehouse facility.
This article originally appeared on Recode.net.
