Blue Apron Is Laying Off Hundreds of Workers After a Tough Few Months

October 19, 2017, 2:41 AM UTC

Blue Apron’s brief life as a public company just got a bit more tumultuous.

The meal-kit-delivery company disclosed Wednesday in a regulatory filing that it would lay off 6% of its workforce. The company said earlier this year that it had a little over 5,000 employees, so a 6% cut would equate to roughly 300 employees.

Blue Apron also said that it expects to incur around $3.5 million in expenses in its fiscal fourth quarter, according to the filing.

The layoffs come after a tough few months after the company went public in late June. The company’s IPO performed poorly in light of Amazon (AMZN) announcing earlier in June that it would buy Whole Foods for a whopping $13.7 billion. A possible Amazon-sanctioned meal-delivery service using Whole Foods could prove to be a powerful competitor for the much smaller Blue Apron.

Get Data Sheet, Fortune’s technology newsletter.

Blue Apron’s shares were down about half-a-percent in after-hours trading to $5.27. The company’s shares are down nearly 43% since its IPO when shares were trading around $9.34.

Blue Apron CEO Matt Salzberg wrote a letter to employees explaining the rationale behind the layoffs. The letter was disclosed in a corporate filing:

Hi everyone,

Today was a difficult day for our entire organization, but I want to thank you for the leadership and respect you demonstrated throughout the day.

A company-wide realignment, like the one we announced, is always painful, and especially so for a close-knit team like ours. Our leadership and Board did not take this decision lightly, and I want to assure you that we believe it was necessary as we focus the company on future growth and achieving profitability.

The actions that we took today flowed from the roadmapping and reprioritization exercise that we recently undertook. As part of that work, we identified the need to reduce some roles, open others, and streamline decision making for greater accountability. Wherever possible, we sought to fill new roles with existing employees.

What makes this decision especially difficult was that we parted ways with many dedicated and talented colleagues, as well as friends whom we care deeply about. I want to thank them for their numerous contributions over the years, and wish them the best going forward. It was particularly important to us that we show this respect and appreciation with meaningful severance packages and ongoing job placement support, which we are in the process of providing.

As CEO, I promised you that I would be frank and transparent as we invest in and position our company for the future. I will be hosting a Q&A session shortly and hope you can join. I also encourage you to find me during my regular office hours for a conversation, or to email me directly with any questions.

We have accomplished so much together over the past five years, and no words can adequately describe my appreciation for the work you do each day. I’m confident that the changes we made today will make our organization stronger and help us continue to improve the lives of our customers across the country. I believe in where we are going, and I believe in our team’s ability to get there together.

Subscribe to Well Adjusted, our newsletter full of simple strategies to work smarter and live better, from the Fortune Well team. Sign up today.

Read More

Artificial IntelligenceCryptocurrencyMetaverseCybersecurityTech Forward