Blue Apron will reduce its workforce by 4 percent as it aims to become profitable in 2019, the meal kit company announced Tuesday.
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.
Blue Apron's stock traded down as much as 5 percent after hours on Tuesday.
The company also is focusing on its direct-to-consumer business. It wants to increase engagement with the top 30 percent of its customers on a net revenue basis by focusing on marketing and innovation within this segment.
It also wants to expand its reach through brand partnerships, such as its deal with Jet.com to make same-day or next-day deliveries in New York City.
"We expect this focus to create a more efficient business, as well as increase key customer metrics, including order rate and revenue per customer," said CEO Brad Dickerson in prepared remarks. "We believe this strategic focus will have a meaningful and positive impact on our current and future customers and deliver value to our shareholders."