Blue Apron puts hiring freeze in place, cuts recruiting staff

Blue Apron implements hiring freeze
Blue Apron implements hiring freeze

Blue Apron has instituted a hiring freeze for its salaried employees and laid off 14 members of its recruiting team, who were responsible for employing operations and technical employees.

The meal kit delivery services' vice president of human resources, Kate Muzzatti, stepped down Aug. 11, just as the company had begun to ramp up its new fulfillment center in Linden, New Jersey, the company told CNBC.

Bloomberg was the first to report Muzzatti's departure.

In a statement to CNBC, CEO Matt Salzberg said Blue Apron had recently made changes to its organizational structure and created a new consumer products team and a team for its plant in Linden.

"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," he said. "As a result, we implemented a small reduction in staff on our recruiting team."

Blue Apron is still hiring for certain corporate positions as well as hourly fulfillment center workers and is in the final stages of hiring for a new chief human resources officer position, the company told CNBC.

Muzzatti's departure occurred a day after reports surfaced about unexpected costs at Blue Apron's new plant in New Jersey dragging marketing spending down. Her resignation comes just a month after co-founder Matt Wadiak left his post as chief operating officer and transitioned to a senior advisory role.

Blue Apron shares closed up slightly at $5.25 on Tuesday.