Meal kit delivery company Blue Apron is cutting nearly a quarter of its staff amid a rough transition to a public company.
Bloomberg reports that Blue Apron is cutting 1,270 positions from its New Jersey facility, about a month after its IPO. Bloomberg notes that the company had 5,202 employees at the end of March.
Blue Apron delivers quality, pre-measured ingredients with original recipes so customers can cook at home without planning meals and grocery shopping. Each meal comes out to about $10 per serving.
When Blue Apron cut its IPO price, the common assumption was that Amazon’s blockbuster purchase of Whole Foods Market played a role. Since then, GeekWire reported that Amazon established its own meal kit delivery business, putting it in direct competition with Blue Apron.
Though the competitive heat has been turned way up thanks to Amazon’s grocery and meal kit push, Blue Apron still has strong brand recognition and remains the leader in the meal kit delivery space. Blue Apron had over a million paying customers ordering nearly $800 million in revenues in 2016.