Blue Apron recently announced the closing of its Jersey City location after its initial public offering just a month ago. Shares of the company have fallen more than 6%, and the company is reported to have lost a third of its workforce.
The meal-kit delivery company is experiencing a period of turmoil with its location closure and is anticipating around 470 workers will lose their jobs. Although they are leaving their Jersey City location, they are opening a new location in Linden, New Jersey. The company stated that they will offer all of its Jersey City employees the opportunity to move to the new location amid the Jersey City closure. However, they still have to cut a good portion of their workforce.
Since its debut on the New York Stock Exchange, Blue Apron hasn’t received good fortune in its endeavors. Their initial public offering price was $10 per share, but with stocks falling due to job cuts, the stock closed below $6 per share.
Erik Thoreson, principal at Technomic, made the following statement via an email to CNBC:
“While the old and new facilities are only about 15 miles apart, many current employees may be hesitant to make the move due to extended commute times each day. Additionally, the availability of public transportation is also an important consideration from a workforce standpoint. In a market where employees have fewer options, we would likely see more being willing to make the trek.”
Earlier this year in February, the company initially planned to bring in more than 2,000 jobs to New Jersey with the new Linden facility and also to hire around “400 to 500” people who reside in the Linden area. Matthew Wadiak, Blue Apron co-founder and chief operating officer, is also expected to move on to a senior advisory role.
Blue Apron will hope to turn its fortune around in the months to come and experience growth in its new Linden location.