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Blue Apron's stock fell 5.7% after the company said it would be off 4% of its workers in an effort to push the company closer to profitability.
The announcement came as Blue Apron reported earnings for the third quarter. The company said revenue fell to $ 151 million, while it fell to 18 cents a share from a loss of 47 cents a share. Cash on hand declined to $ 163 million at $ 229 million a year earlier.
Blue Apron's customer base in the previous year. The company reported 717,000 customers in the third quarter, a decline of 16% year over year. However, the number of orders per customer has increased to 4.4 from 4.2.
Since going public at $ 10 a share in June 2017, Blue Apron's stock has lost nearly 90% of its value. After announcing earnings and the layoffs, the stock fell as much as 5.7% in after-hours trading.
In a statement, the company said it would push toward profitability by focusing on "affinity and retention," while "partnering with more retailers and on-demand platforms. The reorganization would also lead to the loss of 25 Blue Apron jobs.
Blue Apron said it will incur $ 1.6 million in severance charges this quarter. The layoffs will help save about $ 16 million a year.
"We are taking decisive actions to prioritize our highest-impact opportunities and build a stronger, sustainable business. As a result of these actions now underway, we expect EBITDA basis in 2019, "said CEO Brad Dickerson. "This is a difficult decision to share ways with valued employees."
EBITDA refers to earnings before income taxes, depreciation and amortization-a metric that excludes certain costs that are factored into net income.
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