Blue Apron Lays off Hundreds of Employees

Blue Apron Lays off Hundreds of Employees

Meal kit maker Blue Apron (NYSE: APRN) recently announced that it would lay off about 300 employees, or 6% of its workforce, in a bid to boost the company's "future growth." Employees in the marketing, software development, operations, and business development talent departments will be laid off, resulting in a $3.5 million charge.

CEO Matt Salzberg stated that the layoffs would "streamline decision making for greater accountability," but investors likely interpreted the move as another indicator that the company is in trouble. Blue Apron's stock tumbled 2.5% on Oct. 19 following the announcement, and is now almost 50% below its IPO price of $10.

Image source: Blue Apron.

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Source: Fool.com