Blue Apron (NYSE: APRN) announced Tuesday it will reduce its workforce by 4% as it aims to become profitable in 2019.
In a release outlining the company's strategic goals for profitability, it said the reduction is aimed at "streamlining personnel to create a more agile and focused organization." It will spend $1.6 million in the fourth quarter on severance charges and other exit costs. The company estimates it will save $16 million in 2019.
The company also is focusing on its direct-to-consumer business. It wants to increase engagement with the top 30% of its customers on a net revenue basis by focusing on marketing and innovation within this segment.
The company declared a net loss improved 61% or $53.3 million year-over-year from $87.2 million to $33.9 million; adjusted EBITDA improved 61% or $29.2 million year-over-year from a loss of $48.0 million to a loss of $18.8 million driven by expense management and operational efficiencies.
CEO Brad Dickerson stated, "In the third quarter, we outperformed our previously stated adjusted EBITDA outlook …. While net revenue was in line with our guidance range, we are taking actions to address our top-line performance.
"As we look ahead, we are confident in our disciplined approach to pursue initiatives that will enable us to realize the results we expect, with a deliberate emphasis on reaching profitability on an adjusted EBITDA basis next year."
The stock began Wednesday down 11 cents, or 9%, to $1.11, within a 52-week trading range of $1.02 to $4.56.
