Gousto puts hundreds of jobs at risk as meal kit giant fends off rivals

Meal kit giant Gousto has announced plans to shutter one of its production warehouses, placing 290 jobs at risk.

The company stated the move is necessary to enhance operational efficiency within a highly competitive food market and to maintain affordable prices for consumers.

This proposal involves consolidating manufacturing into a single facility, leading to the closure of its Clay Lake site in Lincolnshire.

Consequently, all production will be centralised at its Warrington, Cheshire, facility, where Gousto's subscription food boxes are prepared and dispatched.

Gousto, which delivers ingredients for home-cooked meals, competes with rivals such as Hello Fresh and Mindful Chef.

The firm highlighted significant investment in its Warrington warehouse, including the adoption of advanced automation technology. This strategic focus aims to support a wider selection of recipes and increase the personalisation of customer orders.

It produces the vast majority of orders and has a team of about 600 staff.

The meal kit 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, founder and chief executive of Gousto, 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.

"Over recent years we have invested heavily in Warrington, building a highly advanced fulfilment hub with the technology, scale and capacity for future growth. That investment has transformed the way our network operates and gives us the opportunity to simplify our manufacturing footprint for the future.

"While this reflects the evolution of our operations, it does not make the impact on colleagues any easier. Our focus now is on supporting people through this process with care, respect and practical help."

With Gousto, customers get to pick from a new list of recipes each week, covering everything from classic comfort food to adventurous global dishes.

The price of a Gousto meal box varies, depending on how many meals and how many people you are cooking for. Prices start from £18.99 and can reach as high as £60, plus a £3.99 delivery fee.

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