HelloFresh may close its Nuneaton site, impacting 900 jobs.
- The facility could operate till mid-2025 if plans proceed.
- HelloFresh has reduced pre-tax losses but faces workforce cuts.
- The decision aims to streamline operations and reduce waste.
- Growth is expected in the Ready-to-Eat product category.
HelloFresh has revealed plans that might result in closing its distribution centre in Nuneaton, which could affect around 900 jobs. The company stated that, pending approval, operations at this site will continue until the middle of 2025. This facility, launched in 2020, was the second large site established by HelloFresh in the UK.
The closure proposal comes amid reports that HelloFresh’s UK division significantly cut its pre-tax losses last year, achieving a turnover nearing £500 million. Despite this financial improvement, the average number of employees in the UK fell from 2,159 to 1,842 over the past year.
While acknowledging the tough decision to propose closure, HelloFresh insists this action does not reflect the performance of its personnel. Instead, it seeks to optimise operations by merging activities and utilising advanced parts of its network more efficiently, aiming to provide customers with better products while minimising waste and emissions.
The company has assured its commitment to supporting employees through the consultation process and has pledged to focus on redeployment opportunities within the company if the site closure proposal is accepted. It also plans to offer incentives for employees who remain with the company until the site’s potential closure.
Interestingly, HelloFresh reported a surge in sales during the third quarter. The larger HelloFresh group, based in Berlin, saw its third-quarter revenues increase to €1.83 billion from €1.80 billion in the previous year. Co-founder and CEO Dominik Richter highlighted the company’s strategy to enhance meal kit offerings with more variety, value, and improved service.
Richter further explained the financial goals of widening free cash flows and profitability, involving steps such as selective customer acquisition and adjusting production facilities. He pointed out that the ready-to-eat (RTE) product category will drive the company’s growth, emphasising its leadership in the US market and the potential to expand globally.
HelloFresh faces a challenging yet strategic path balancing potential job impacts with future growth ambitions.
