HelloFresh is making some big changes in Texas, and unfortunately, that means job cuts.
The meal kit company is shutting down its Grand Prairie distribution center, leaving 273 employees without jobs by mid-May.
Operations will be consolidated at the company’s more advanced Irving facility as part of a broader effort to improve efficiency and boost profitability.
This move is just one of several workforce shakeups HelloFresh has made recently.
As consumer habits shift and the meal kit market stabilizes post-pandemic, the company is focusing on cutting costs, optimizing operations, and diversifying its offerings.
While these changes are meant to strengthen the business, they come at a tough cost for many employees.
HelloFresh to Shut Down Texas Facility, Cutting Nearly 300 Jobs
Meal kit company HelloFresh is restructuring its operations in Texas in an effort to boost profitability and expand its offerings.
Key Takeaways:
HelloFresh is laying off 273 employees at its Grand Prairie, Texas, distribution center, effective May 13, according to a WARN notice.
The company is shutting down the Grand Prairie facility and moving operations to its Irving location, HelloFresh confirmed to Grocery Dive. The news was first reported by The Dallas Morning News.
This decision follows similar staffing adjustments in Arizona as HelloFresh works to improve labor efficiency and strengthen its financial position in North America.
Why It Matters?
HelloFresh, like many meal kit and grocery e-commerce businesses, experienced a boom during the early years of the COVID-19 pandemic.
However, as consumer habits evolve, the company is now refocusing on efficiency and profitability.
“As the meal kit market normalizes, we are now focused on diversifying our product offerings and driving profitable growth by optimizing our operational footprint,” a HelloFresh spokesperson shared in an emailed statement.
“As a result, we have made the difficult decision to consolidate our operations in Texas.”
The Irving facility is the company’s most advanced fulfillment center, designed to provide more customization and choices for customers.
HelloFresh has stated that affected employees will receive financial support and, where possible, relocation opportunities.
This isn’t the first recent workforce shakeup at HelloFresh. The company recently ended its partnership with staffing agency Manpower, leading to layoffs at the Irving site.
However, HelloFresh has offered reassignment opportunities to impacted workers, according to The Dallas Morning News.
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Similar Moves in Arizona & Beyond:
HelloFresh’s restructuring efforts extend beyond Texas.
In January, a WARN notice revealed that 564 workers in Arizona would be affected.
The Phoenix Business Journal reported that this was due to HelloFresh consolidating its use of temporary staffing agencies.
Employees previously hired by Manpower were offered reassignment opportunities with Factor (a ready-to-eat meal company HelloFresh acquired in 2020) or a transition to staffing firms Adecco or Randstad.
With the Grand Prairie closure, HelloFresh will be left with eight distribution centers across the U.S.
The company has been restructuring its distribution network worldwide:
In 2024, HelloFresh closed its Atlanta-area facility, eliminating 727 jobs.
In the fall, it announced plans to shut down a center in Nuneaton, England, per a report from the BBC.
Meanwhile, the company expanded operations in Australia, opening a distribution center in Sydney last year.
Financial Outlook & Strategy:
Speaking to investors last week, CFO Christian Gartner highlighted that labor productivity improvements in North America have helped stabilize HelloFresh’s contribution margin.
He also confirmed that site closures are part of a larger cost-cutting initiative, though he didn’t specify which locations would be affected next.
Despite these challenges, HelloFresh’s stock is a mixed bag:
- Down 37% since the start of 2025
- Up 19% compared to this time last year
In 2024, the company’s revenue saw less than 1% growth year over year. While higher average order values helped, a decline in total orders offset those gains.
According to its recent earnings report, HelloFresh is now prioritizing profitability and cash flow over sheer volume growth.
With ongoing restructuring and efficiency improvements, the company is betting on a more sustainable future—though for the workers affected, the immediate impact is undoubtedly tough.
Final Thoughts:
HelloFresh’s decision to shut down its Grand Prairie facility is part of a larger effort to streamline operations and focus on profitability, but it also means hundreds of workers will be left looking for new jobs.
While the company is offering some financial support and reassignment opportunities, these changes highlight the challenges facing the meal kit industry as it adapts to shifting consumer habits.
As HelloFresh continues to restructure, the big question is whether these cost-cutting measures will be enough to drive sustainable growth in the long run.
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