The cost reduction plans address both near-term and long-term expenses as Blue Apron focuses on driving towards profitability in the future. These savings are planned to be implemented throughout the coming year. The company expects to recognize such expenses in the fourth quarter of 2022.īlue Apron plans to further reduce expenses and has identified expense reductions of up to approximately $50.0 million in 2023, as compared to 2022, including the headcount changes identified above.
As a result of these actions, the company expects to incur approximately $1.2 million in employee-related expenses, primarily consisting of severance payments, substantially all of which will result in cash expenditures. This will result in a reduction of approximately 10% of its total corporate workforce. Sanberg’s affiliate to meet its obligations, Blue Apron is actively working with its financial advisors to maximize value from the pledged collateral, including potentially selling or leveraging the pledged collateral to enhance its credit with its current or future lenders.īlue Apron continues to identify and execute against multiple initiatives to both reduce expenses, and streamline decision-making and organizational structure, including a plan for meaningful reduction in marketing, consulting and labor spend in 2023.Īs such, to create a more nimble, focused organization and to better align internal resources with strategic priorities, Blue Apron is streamlining its personnel this week. While the company continues to assess the ability of Mr. Sanberg’s affiliate did not fund by November 30, 2022, under the agreement, the company now has the right to foreclose on the pledged collateral. Sanberg’s affiliates pledged shares of private companies to the company to secure the private placement obligation of $56.5 million of Class A common stock. Joseph Sanberg, its expense reduction initiatives and its liquidity position.Īs previously disclosed, on November 6, 2022, Blue Apron entered into a pledge agreement under which one of Mr. Blue Apron (NYSE: APRN) today released business updates regarding the funding status from affiliates of Mr.
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