The food delivery company Yelloh, previously known as Schwan’s Home Delivery, will lay off 750 employees and close 90 delivery centers across America. Deliveries will continue in 18 states using the company’s yellow trucks, while customers in other areas will receive their deliveries via UPS. The company attributed these changes to economic challenges, increased business costs, and impacts from the post-pandemic world.
Yelloh Announces Job Cuts and Delivery Center Closures Nationally
BLOOMINGTON, Minn. – Food delivery firm, Yelloh, previously known as Schwan’s Home Delivery, has announced it will cut 750 jobs across the country and close 90 delivery centers.
According to a layoff notice filed with North Carolina, this includes 19 workers in Raleigh and Salisbury.
The Bloomington-based company will commence closures from Dec. 8. Yelloh will continue to serve 18 states with their iconic yellow trucks while UPS will manage deliveries in other areas.
Yelloh cites economic obstacles, increased business costs, and post-pandemic challenges as reasons for the closures. Despite efforts to modernize and transform the company, the difficult decision to close facilities was deemed necessary.
Customers in Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Pennsylvania, South Dakota, Texas, Vermont, West Virginia, and Wisconsin can expect continued service from Yelloh trucks.
The home delivery service began in 1952 under Schwan’s. In 2018, a 70% share of the business was sold to Korean firm CJ CheilJedang for $1.8 billion. However, the Schwan family retained the Home Delivery venture and rebranded it as Yelloh last year.