HelloFresh Faces Sales Drop, Job Cuts, and Market Exit

0:00On March 18th, HelloFresh is facing tough times with sales dropping sharply after the pandemic meal kit boom faded. The company saw revenue fall more than 11% last year, to about 6.8 billion euros, well below earlier projections of 10 billion. It blamed economic uncertainties and a shift to focus on fewer but more profitable customers. The boom came during COVID lockdowns when demand soared for companies like HelloFresh, Gusto, and MindfulChef. But now, with cost of living pressures, consumers are ditching convenience meals. HelloFresh's share price has plunged 93% from its 2021 peak and dropped another 8% in early trading this. Week. Job cuts have hit hard, including 900 positions in the UK after closing a site in Nuneaton. Overall, employee numbers shrank to 19,000 by year end from nearly 21,800 the year before. The firm also shut delivery centers across Europe and pulled out of Spain and Italy, saying

1:00those markets lack a path to profitability. In the US, its largest market sales tumbled almost 17% due to manufacturing snags and meal quality problems that hurt customers. Retention. High interest rates and trade tariffs added to customer caution. Total orders fell 12% last year, with over 100 million fewer meals delivered. Looking ahead, HelloFresh expects revenue to dip up to 6% in 2026, but it's pushing to raise standards and win back loyalty in a cooling market.