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> * What is Blue Apron's reason for the job cuts? Companies sometimes increase headcount before a fundraising event to create a signal that growth is occurring
by grandalf 9y ago
> * What is Blue Apron's reason for the job cuts?
Companies sometimes increase headcount before a fundraising event to create a signal that growth is occurring, or to maximize one area of visible growth as much as possible. This headcount is not always needed after the raise.
> * Was this going to happen anyway or was there increased pressure from the IPO?
After funding the company can focus on essential expenditures and focus its growth and revenue targets on what matters most to investors. It's a good thing for shareholders to cut costs, since headcount can always be increased again when necessary.