HelloFresh announces layoffs affecting more than 600 staffers.
The online meal subscription firm is also closing its Bay Area facility.
The company notified its 611 warehouse workers in Richmond, California about the cutbacks, being effective on December 11.
HelloFresh informed the State of California in accordance with the Worker Adjustment and Retraining Notification Act.
The cuts are connected to the factory’s permanent closure, which is currently for lease.
A spokesperson said it is prioritizing “newer, more efficient sites,” and “profitable growth through strategic investments in infrastructure, technology, and high-efficiency operations.”
“The decision not to extend the lease is not a reflection of the local teams’ performance, and we are grateful for their contributions.”
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The Richmond warehouse is one of two in the US where HelloFresh workers attempted to form a union last year.
Another warehouse that faced a union push is in Aurora, Colorado.
HelloFresh, like many other grocery delivery companies, saw an increase in sales during the early months of the pandemic.
The firm ships ingredients and recipes to its customers, enabling them to cook their own meals and sharpen their cooking skills.