Meal prep kit company HelloFresh said it intends to cease operations at a massive Bay Area production facility at the end of 2022, with more than 600 employees expected to be laid off.
The Berlin-based company, long considered an industry leader, has seen its demand shrink in recent months. In its half-year financial report, the company posted earnings per share that were down 25% from the previous year.
The company sent a letter dated Oct. 10 to the California Employment Development Department announcing its decision to shutter the 109,594-square-foot warehouse on Dec. 11. The closure will lead to the layoff of 611 employees, including production associates, managers, and maintenance staff.
The company was required to file the notice of closure with its staff 60 days in advance under the California WARN Act.
The company’s lease was set to expire in early 2023 and HelloFresh decided against extending it after an “extensive analysis” of its production network, a spokesperson told the San Francisco Chronicle.
HelloFresh will have its earnings call on Nov. 1.