Food delivery business Yelloh to lay off 750 employees nationwide, close 90 delivery centers

Food delivery business Yelloh to lay off 750 employees nationwide, close 90 delivery centers

Yelloh, formerly known as Schwan’s Home Delivery, is undergoing significant changes that involve the closure of 90 delivery centers and the elimination of 750 jobs nationwide. This move, set to commence on December 8, reflects the company’s response to economic challenges, escalating operational costs, and the evolving post-pandemic landscape.

Headquartered in Bloomington, Minnesota, Yelloh is a well-known name in the food delivery business, recognized for its distinctive yellow trucks. While this restructuring will impact several areas, Yelloh remains committed to serving customers in 18 states with its iconic delivery trucks. For customers outside these regions, deliveries will be facilitated through UPS, ensuring continuity of service and a seamless transition.

In a statement, Yelloh expressed gratitude to its dedicated teams across the country for their relentless efforts to modernize the company and position it as a category leader in the evolving food delivery industry. Despite these efforts, the decision to close locations and make necessary adjustments has become a reality, aligning with similar challenges faced by many retail businesses in the current economic climate.

The company’s signature yellow trucks will continue to make deliveries in Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Pennsylvania, South Dakota, Texas, Vermont, West Virginia, and Wisconsin.

Yelloh’s roots in home delivery date back to 1952, and it has been a prominent player in the industry. In 2018, the Schwan family executed a strategic move by selling a 70% share of their business to the Korean firm CJ CheilJedang for a substantial $1.8 billion. However, they retained ownership of the Schwan’s Home Delivery business, which was rebranded last year as Yelloh.

This restructuring initiative marks a pivotal moment in the transformation journey of Yelloh, reflecting the broader shifts and challenges experienced by companies in the ever-changing landscape of the food delivery sector. While change can be difficult, Yelloh is committed to adapting and ensuring the continued provision of services to its valued customers.

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