HelloFresh, a meal-kit provider, will shutter its Newnan facility on July 10, laying off 727 workers, the company confirmed this week.
It is the largest single layoff announced so far this year, according to state officials who track filings under the federal Worker Adjustment and Retraining Notification law, which applies to large-scale layoffs and plant closures.
In a statement, the company, which opened a large distribution center at the height of the pandemic in 2020 in response to a surge in demand, said that the market segment it serves has “stabilized,” making the closure necessary.
“We are now focused on diversifying our offerings and optimizing our operations network to best serve our customers and grow profitably,” HelloFresh said in a statement. “As a result, we have made the difficult decision to cease operations at the Newnan distribution center.”
The company said it will use other sites to serve customers.
“Operational efficiency is central to everything we do at HelloFresh and we will continuously review and optimize our operational setup,” the statement said. The news was first reported by the Newnan Times-Herald.
The company, which is based in Germany, announced the opening of the distribution center in August 2020 with a press release that featured quotes from Gov. Brian Kemp, Metro Chamber President Katie Kirkpatrick and several Coweta County officials.
The 208,930-square-foot facility was the company’s first foray into the Southeast.
It was a move fueled by the trends of the pandemic, the switch of many to stay-at-home, the shift of consumer spending from services to goods and the desire for home delivery instead of in-person shopping. That wave spurred a wave of hiring in logistics, warehouses and delivery businesses, most notably Amazon.
However, during the past two years, spending has moved back toward more traditional patterns, leading to a hiring boom in restaurants and retail and some layoffs in the logistics sector.
The facility will close on July 10, according to the company’s filing.
The workers at the facility are not represented by any union, according to the company’s filing.
The company said it will continue to make food donations in partnership with Second Helpings Atlanta, Pratt Industries, and the Atlanta City Council through the end of the year.
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