Blue Apron is slipping after laying off hundreds of workers (APRN)

Blue Apron

The firm is expected to pay about $3.5 million in severance to affected employees. But individual companies within the sector are still struggling to find the right recipe for success.

Blue Apron is approaching their next earnings report in the next few weeks; the company said Wednesday they plan on laying off 6% of their staff as part of "a company-wide realignment of personnel to support its strategic priorities".

"The actions that we took today flowed from the roadmapping and reprioritization exercise that we recently undertook", said Matt Salzberg, Blue Apron CEO, in a memo to employees. As part of that work, we identified the need to reduce some roles, open others, and streamline decision making for greater accountability.

Blue Apron has cut spending on marketing and is ramping up a new automated distribution center in Linden, N.J., a move the company previously said forced it to delay some of its new product launches. From Amazon and Kroger (KR - Free Report) jumping into the meal-kit and meal-prep game to rival HelloFresh planning to go public, it's more important than ever that Blue Apron show investors and analysts that it can both retain customers and expand its base.

Among 2 analysts covering Blue Apron (NYSE:APRN), 0 have Buy rating, 0 Sell and 2 Hold.

The company, considered the largest meal kit provider in the USA, posted a second-quarter loss of $31.6 million on revenues of $238.1 million in its first filing as a public company. The company reported ($0.47) EPS for the quarter, missing the consensus estimate of ($0.26) by ($0.21).

Cerankosky is projecting a "significant loss" for the company's third quarter, which it is scheduled to report on November 2. "That being said, we are competing in a competitive and large market ..." Oppenheimer Holdings, Inc. began coverage on Blue Apron Holdings in a report on Monday, July 24th.

It has more than 60 open positions in the US, including jobs in data science, engineering, finance, food safety, marketing operations, product and procurement, according to a company statement last month. Equities research analysts anticipate that Blue Apron Holdings Inc will post ($1.56) EPS for the current year. Executives warned that the second half of the year would be worse than the first.

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