Meal kit brand Gousto has unveiled plans to close one of its production warehouses, putting 290 jobs at risk. The company said it needs to operate more efficiently in a competitive food market and to keep prices as low as possible for consumers.
Consolidation at Warrington Site
The proposals involve bringing manufacturing into one facility and closing the Clay Lake site in Lincolnshire. This means all production will take place at its site in Warrington, Cheshire, where Gousto boxes are prepared and dispatched. Gousto makes and delivers subscription food boxes for people to cook meals at home, rivalling other brands in the market like Hello Fresh and Mindful Chef.
The company said it has invested heavily in its Warrington warehouse and adopted advanced technology like automation, supporting efforts to offer the biggest choice of recipes and increasing personalisation of customer orders. It produces the vast majority of orders and has a team of about 600 staff.
Efficiency Drive in Competitive Market
The firm also said running two warehouses is no longer efficient and is leading to duplication. Gousto said it is focused on supporting the around 290 staff who will lose their jobs if the plans go ahead.
Timo Boldt, Gousto’s founder and chief executive, said: “This is an incredibly difficult proposal given the impact on our colleagues in Clay Lake, who have contributed enormously to Gousto’s journey over a number of years. In a highly competitive food market, it is however essential that we operate as efficiently as possible so that we can continue to invest in our proposition and keep prices as low as possible for customers. Our focus now is on supporting people through this process with care, respect and practical help.”
