Blue Apron Inc. slashed 4% of its workforce Nov. 13 as it reported a decline in customers and revenue for its fiscal third quarter.
The reduction in employees is expected to save the company about $16 million during its 2019 fiscal year, the company said in a filing with the SEC. The company also highlighted its continuing efforts to grow its direct-to-consumer sales and its partnerships with brick-and-mortar retailers.
"As a result of these actions now underway, we expect to be profitable on an adjusted EBITDA basis in 2019," Blue Apron CEO, President and director Bradley Dickerson said in a statement.
"This included the difficult decision to part ways with valued employees," Dickerson added.
The layoffs come as Blue Apron reported lower customer counts and less spending from customers who continued to order meal kits. The company lost about 25% of its customers year over year during the third quarter. At the same time, Blue Apron's average revenue per customer fell 4.9% to $233.
Shares of Blue Apron fell 3.3% to $1.18 in after-market trading Nov. 13.
The company reported its layoffs and third-quarter results after U.S. markets closed. Previously, the company had said it planned to report third-quarter results Nov. 14.
Blue Apron's net loss of $33.94 million beat the mean consensus estimate for a GAAP loss of $41.38 million compiled by S&P Global Market Intelligence.
The per-share net loss for the quarter of 18 cents also beat analyst expectations. The S&P Global Market Intelligence mean consensus estimate for GAAP EPS forecast a loss of 22 cents.
Net revenue at the New York-based company fell 28% to $150.6 million.