Blue Apron to cut 10% of corporate workforce

(Reuters) -Blue Apron Holdings Inc will cut about 10% of its corporate workforce, the online meal kit company said on Thursday, the latest U.S. firm reining in costs against the backdrop of rising expectations of an economic downturn.

Shares of the company, which is facing uncertainties around funding, rose as much as 12.5% at open after it also identified up to about $50 million in cost cuts for 2023. They later pared some gains to trade 5% higher.

U.S. companies ranging from top banks and tech majors to finance startups have announced job cuts in recent months, as Corporate America braces for a looming recession.

New York-based Blue Apron, which had about 1,657 full-time employees as of Sept. 30, said it expects to incur about $1.2 million in related expenses, primarily severance payments, in the fourth quarter of 2022.

Blue Apron in November withdrew its full-year revenue growth forecast, citing uncertainty around an expected funding from affiliates of longtime investor Joseph Sanberg.

It missed third-quarter revenue estimates as both the number of customers and orders dipped.

(Reporting by Deborah Sophia in Bengaluru; Editing by Sriraj Kalluvila)