Blue Apron Holdings Inc (NYSE:APRN) announced that it would be cutting down its workforce by 6%.
The food delivery service has about 5,000 workers, so a 6% cut would amount to roughly 300 workers. The move is a shock from Blue Apron, which went public a few months ago, in June.
The IPO performed poorly following Amazon.com, Inc’s (NASDAQ:AMZN) decision to acquire Whole Foods around the same time and launching a meal-delivery service through Whole Foods, which took a bite out of Blue Apron’s business.
The company’s workforce reduction filing also mentioned that it plants to incur about $3.5 million in expenses in its fiscal fourth quarter. Blue Apron CEO Matt Salzberg spoke of the matter, noting that a company-wide realignment is a painful one and it was a hard decision for the Board.
The company hopes to move forward by bringing in more growth and achieving profitability. “The actions that we took today flowed from the roadmapping and reprioritization exercise that we recently undertook,” Salzberg said.
“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,” he added.
Salzberg also mentioned that many of the workers Blue Apron parted with are talented and important individuals who simply had to be let go to cut down on costs.
APRN shares fell 1.6% Thursday.