Freddie’s Flowers is responding to ongoing revenue declines by cutting 26% of its workforce, with a focus now on achieving profitability.
- The e-commerce flower subscription service has seen its headcount reduced to just over 200, down from 271, marking a nearly 60% drop since 2022.
- Annual revenue for Freddie’s Flowers decreased by 8.2% to £35.7 million by the end of August 2024, continuing a downward trend from pandemic highs.
- Despite the financial challenges, pre-tax losses were reduced from £2 million to just under £1 million, reflecting a strategic pivot towards breaking even.
- The company has narrowed its international operations to focus on the UK and Germany, withdrawing from the Netherlands and California.
Freddie’s Flowers, the noted e-commerce flower subscription service, has announced significant staffing reductions as it grapples with a sustained decline in revenues. The company has decreased its workforce by 26%, bringing its headcount down to a little over 200 employees from 271 last year. This staffing adjustment represents a nearly 60% reduction compared to 2022.
The London-based business reported an 8.2% drop in annual revenue, amounting to £35.7 million for the year ending August 2024. This decline is part of a broader trend of falling revenues since the peak experienced during the pandemic. The shift away from pandemic-induced consumer behaviours is notable as normal shopping patterns resume.
Despite facing financial hurdles, Freddie’s Flowers has managed to curtail its pre-tax losses, reducing them from £2 million to under £1 million. This improvement underscores the company’s strategic refocusing from expansion to profitability. In a statement, the company expressed optimism about its growth-focused initiatives, believing they would deliver positive results while maintaining an emphasis on financial sustainability.
Freddie’s Flowers previously gained attention in 2020 for an innovative bond initiative aimed at funding growth through the issuance of ‘flower bonds’ to regular customers. These bonds have now matured, and the proceeds were intended to support international expansion. However, the company has since adjusted its strategy, withdrawing from ventures in the Netherlands and California to concentrate efforts in Germany and the UK.
Freddie Garland, the founder of Freddie’s Flowers, initiated the company from a gazebo in his parents’ garden after leaving a position at Abel & Cole. The business raised a significant $60 million in an August 2021 funding round. Despite current challenges, the company remains committed to stabilising and expanding its core markets.
Freddie’s Flowers’ strategic shift highlights a renewed focus on profitability amidst the challenges of a changing market landscape.
