(KRON) — Meal-kit delivery service Blue Apron will be reducing its workforce by about 10%, the company announced in a press release Thursday. The Richmond-based company said the staff reduction is part of an effort to “create a more nimble, focused organization to better align internal resources with strategic priorities.”
Launched in 2012, Blue Apron offered customers fresh “chef-designed” meal kits that were designed to make it easy for home chefs to put together. In addition to laying off staff, the company said it is looking to reduce marketing and consulting expenses in 2023.
The layoffs are part of a broader $50 million expense reduction plan that will include additional expense reductions intended to be implemented in the coming year, the blog post states. Laying off the workers will see the company incur employee-related expenses of around $1.2 million. According to the press release, they will consist mainly of severance payments.
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Meal-kit services were popular pre-pandemic, when they provided a convenient means to put together a meal with a minimum of prep for commuting workers. However, the business model has seemingly been in decline in post-pandemic times.
In October, another meal-kit company announced layoffs. HelloFresh, also based in Richmond, announced it would close its Richmond facility and lay off 600 Bay Area workers.