Blue Apron Was Never a Growth Story. The Layoffs Prove It.

Blue Apron Was Never a Growth Story. The Layoffs Prove It.

Meal-kit delivery service Blue Apron (NYSE: APRN) went public in June. Now, less than six months later, the company is laying off 6% of its workforce. A few days after the IPO, I warned that Blue Apron was a bad business that investors should avoid. In August, I said the growth story was dead. These layoffs are yet more evidence Blue Apron's growth story never rang true.

In a letter to employees, Blue Apron CEO Matt Salzberg announced the layoffs on Thursday. "A companywide realignment, like the one we announced, is always painful, and especially so for a close-knit team like ours," said Salzberg. "Our leadership and Board did not take this decision lightly, and I want to assure you that we believe it was necessary as we focus the company on future growth and achieving profitability."

Image source: Getty Images.

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Source: Fool.com