NEW YORK — As part of new cost management initiatives, Blue Apron Holdings is cutting 10% of its corporate workforce. The company said it will incur approximately $1.2 million in expenses related to the workforce reductions, and that it will “better align internal resources with strategic priorities.”
It is unclear how many employees will be affected by the reduction plan. Blue Apron has 1,988 full- and part-time employees, according to the company’s 2021 annual report, and nearly 84% are engaged in fulfillment.
The company plans to further reduce expenses in 2023 up to approximately $50 million.
“The cost reduction plans address both near-term and long-term expenses as Blue Apron focuses on driving toward profitability in the future,” the company said. “Blue Apron is working to strengthen its balance sheet to maintain compliance with its $25 million minimum liquidity covenant.”
For the third quarter ended Sept. 30, Blue Apron Holdings sustained a loss of $25.8 million, similar to the same period of the previous year when the company recorded a loss of $27.6 million.
Quarterly sales were flat at $109.7 million when compared with the third quarter of fiscal 2021.
For the first nine months of the year, Blue Apron has incurred a loss of $87.3 million, up from the $62 million loss during the same period in 2021.
Sales for the period are $351.7 million, down slightly from $363.4 million the year before.
In an interview with Food Business News in September, Linda Findley, president and chief executive officer, said a challenge the company has faced is breaking away from its past.“Blue Apron’s past didn't address customer needs,” she said. “We weren't thinking about the flexibility of today's family. The focus needed to be on quality and the culinary experience. We've done that over the last few years, and we're now focused on bringing them scale.”