Meal kit delivery company Blue Apron has been in a tough spot since it went public earlier this year. Share prices have been declining and the company recently faced a legal attack on the founders claiming they did not disclose all material information when they launched their IPO. And now, the company is undergoing another major issue.
Blue Apron’s Top HR Executive Kate Muzzatti just resigned from the company to take on a position at MM. LaFleur Inc., a women’s apparel startup. The company made the official announcement only yesterday, but the internal announcement was made on August 10.
Soon after this, the company implemented a temporary hiring freeze, meaning they would not be hiring salaried people for some time now. Another major change was a number of job cuts.
The company fired many recruiters and employees. The recruiting team firings totaled 14 people. They were tied to the temporary hiring freeze, which doesn’t affect hourly positions as well as certain roles at headquarters, the company said.
“We recently completed an internal reorganization which involved several changes to our organizational structure, including the creation of our new consumer products team and the launch of a new fulfillment center team in Linden,” Chief Executive Officer Matt Salzberg said in an emailed statement. “As part of these changes, we temporarily paused hiring for certain positions, while keeping others open, for the duration of our 2018 resource allocation process.”
Blue Apron has ambitious plans to upgrade its fulfillment operations and offer a much wider selection of products and options; to that end, it’s been moving a lot of the work to a new warehouse in Linden, New Jersey, all the while winding down an older facility in Jersey City.
The delays and other setbacks mean it will take longer than expected to offer new menu options. Meanwhile, Blue Apron plans to keep cutting marketing to free up cash for the new center. As a result of these complications and the company’s marketing policies, it won’t reach $1 Billion in sales this year — a milestone many investors and analysts expected.