Gousto puts hundreds of jobs at risk as meal kit giant fends off rivals Hello Fresh and Mindful Chef

Meal kit giant Gousto announced that it plans to close one of its production warehouses, putting 290 jobs at risk.

The company said the move was necessary to improve operational efficiency in a highly competitive food market and maintain affordable prices for consumers.

The proposal involves consolidating manufacturing into a single site and closing the Clay Lake plant in Lincolnshire.

As a result, all production will be centralized at the Warrington, Cheshire facility, where Gousto’s subscription food boxes are made and shipped.

Offering ingredients for home cooking, Gousto competes with rivals such as Hello Fresh and Mindful Chef.

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

It produces the vast majority of orders itself and has a team of approximately 600 people.

The meal kit company also said operating two warehouses was no longer efficient and led to duplication.

Gousto said it was focused on supporting around 290 staff who would lose their jobs if the plans went ahead.

Gousto founder and CEO Timo Boldt said: “This is an incredibly difficult proposition given the impact it has had on our colleagues at Clay Lake, who have contributed tremendously to Gousto’s journey over several years.

“In a highly competitive food market, it is crucial that we work as efficiently as possible so that we can continue to invest in our offer and keep prices as low as possible for our customers.

“Over the past few years we have invested heavily in Warrington, building a highly advanced fulfillment center with the technology, scale and capacity for future growth. This investment has transformed the way our network works and given us the opportunity to simplify our manufacturing footprint for the future.

“While this reflects the evolution of our operations, it does not ease the impact on our colleagues. Our focus now is to support people through this process with care, respect and practical assistance.”

With Gousto, customers can choose from a list of new recipes every week, covering everything from classic comfort food to adventurous global dishes.

The price of a Gousto lunch box varies depending on how many meals you cook and how many people you will cook for. Prices start from £18.99 and go up to £60, plus a £3.99 delivery charge.