News of 'layoffs' at Blue Apron moved the stock today — here's what's really going on

pulse

August 4, 2017 6:53 PM

Blue Apron's stock has had a tough run since it went public in June.

Blue Apron CEO Matthew B. Salzberg celebrates with co-founders Ilia Papas and Matt Wadiak during the company's IPO on the New York Stock Exchange in New York

Blue Apron shares bounced on Friday after word that it could lay off up to 1,207 employees from its Jersey City, New Jersey facility as it transitions to a newer location 15 miles away.But the company said it has offered all of its Jersey City employees a transfer to the new facility in Linden. Those who don't accept will lose their jobs. The potential cuts were disclosed in a public notice required by law, and will be effective October 6, trimming the company’s headcount by 24% to 3,995.

A Blue Apron spokesperson said that the layoff notice is merely a formality.

“We’ve been letting staff in Jersey City know for a few months that they can transfer to the new facility,” said Blue Apron’s Head of Communications, Nisha Devarajan, by phone. “A majority decided to transfer over and our hope is that everyone stays with the company.”

Employees in Jersey City can still choose to transfer until October, Devarajan said, but any employees who don't will lose their jobs.

Blue Apron announced the new facility in March, and says it will create 2,000 jobs in addition to its other fulfillment centers in Arlington, Texas and Richmond, California.

Shares of Blue Apron stock have fallen 40% since their June 29 initial public offering.

The company is set to report earnings for the first time next Thursday.

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