APRN - Blue Apron to cut workforce cut costs in major streamlining focus

Blue Apron ( NYSE: APRN ) said on Thursday it continues to identify and execute against multiple initiatives to both reduce expenses, and streamline decision-making and organizational structure. Those plans include a focus on a meaningful reduction in marketing, consulting and labor spend in 2023.

The streamlining actions include a reduction of approximately 10% of its total corporate workforce. As a result of these actions, the company expects to incur approximately $1.2M in employee-related expenses, primarily consisting of severance payments, substantially all of which will result in cash expenditures.

Looking ahead, Blue Apron ( APRN ) plans to further reduce expenses and has identified expense reductions of up to approximately $50.0M in 2023 as compared to this year.

APRN said the cost reduction plans address both near-term and long-term expenses as Blue Apron focuses on driving towards profitability in the future. The company is working to strengthen its balance sheet to maintain compliance with its $25M minimum liquidity covenant. APRN plans to continue to execute on its at-the-market program, if market conditions permit, and execute on the additional planned expense reductions outlined above.

Blue Apron ( APRN ) also continues to work with its financial advisors to evaluate financing and other alternatives, in addition to being in discussions with its lender.

Shares of Blue APron ( APRN ) gained 4.80% following the announcement and a short trading halt.

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