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December 12, 2022
June 14, 2024

Freshly Layoffs: What Happened & Why?

In December 2022, Freshly, a prepared meal delivery service that expanded nationwide after being founded in Phoenix, announced the layoff of 329 local workers. This decision came as the company shifted its focus from home delivery to retail sales, following a decline in subscriptions. In this article, we'll discuss the reasons behind these layoffs, their potential impact, and what the future may hold for Freshly.

Why did Freshly have layoffs?

Freshly is undergoing a pivotal transformation in its business strategy, shifting from home delivery to retail sales. This strategic pivot likely reflects an adaptation to evolving consumer preferences and market demands, potentially influenced by a downturn in subscription numbers. As Freshly explores new avenues for growth and revenue, this transition marks a significant reorientation of its business model.

It appears that Freshly's decision to lay off workers and close warehouses in several states forms part of a broader internal restructuring strategy. This strategic realignment aims to streamline operations and enhance efficiency as Freshly adapts to the dynamic industry landscape.

Financial Impact and Future Directions

Freshly's recent layoffs and strategic shift to retail sales reflect an adjustment to changing market conditions, which may influence the company's financial trajectory. As Freshly repositions itself, the focus on retail could open new opportunities for growth, although the precise products or markets targeted have not been highlighted. This strategic decision underscores an intent to align more closely with current consumer trends and industry shifts.

Impact on Industry

The transition from home delivery to retail by Freshly may signal broader shifts within the food industry, reflecting changing consumer habits and preferences. While the direct impact of Freshly's layoffs on the food industry and the local job market, particularly the loss of 329 jobs at their southwest Phoenix warehouse, underscores significant changes within the company, it also reflects ongoing adaptations in the industry aimed at meeting new consumer demands and expectations.


Freshly's layoffs of 329 workers stem from a shift in business strategy, moving from home delivery to retail sales due to declining subscriptions. This change could impact the food industry and local job market, reflecting evolving consumer preferences. The company's future and industry standing remain uncertain, but their strategic move may position them for success. Broader market implications and potential future actions by Freshly will depend on the outcomes of this transition.