Cherry SE has announced the next phase of its transformation program Blossom, which includes a fundamental restructuring of its Peripherals business to return it to sustainable profitability. The move follows solid margin improvements in recent quarters but comes as the company acknowledges that its cost structure remains too complex and costly for current revenue levels.
According to preliminary and unaudited figures, Cherry SE increased its Group gross margin by 7.4 percentage points in the first nine months of 2026 and improved adjusted Group EBITDA to EUR -6.9 million, compared to EUR -11.9 million in the same period of 2025. Group revenue declined to EUR 58.9 million from EUR 70.7 million, mainly due to the deliberate reduction of stock-in-channel in the Peripherals business. The company noted that the market environment remains challenging.
The Blossom program includes four growth initiatives in the Americas, EMEA and APAC regions and in the Security & Industry product segment, as well as a fundamental redesign of the cost structure. A key goal is a leaner organization with fewer layers and clear ownership that fits today’s revenue level, enables greater efficiency and frees up funds for investment in growth areas. This includes a reduction in jobs, which Cherry will implement in line with local law and in close consultation with employee representatives. With the new target organization, the Peripherals business is expected to be operationally profitable from 2027.
Rogier Volmer, CEO of Cherry SE, said: “We have improved our margins and reduced our costs, but this is not yet enough to become sustainably profitable. That is why we are now taking the next, necessary step. We deeply regret that it also costs jobs. With a more focused organization, we are laying the foundation for growth in our Peripherals business again.”
Separately, the Digital Health & Solutions business continues to develop positively, increasing its revenue by around 37% to EUR 8.9 million in the first half of 2026. The sale process for this business is continuing as planned.
The restructuring is significant for stakeholders as it signals Cherry’s commitment to restoring profitability in its core Peripherals segment, which has faced declining revenue and a challenging market. The job reductions, while necessary for efficiency, will impact employees and local communities. The company’s ability to execute this restructuring while maintaining growth in Digital Health & Solutions will be closely watched by investors and industry observers. For more information, visit the company’s investor relations page at https://ir.cherry.de/en. The original release is available on www.newmediawire.com.
