Cherry SE has announced the next phase of its transformation program Blossom, which includes a fundamental restructuring of its Peripherals business to achieve sustainable profitability. The move follows margin improvements in recent quarters but comes as the company's revenue declined in the first nine months of 2026.
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. However, Group revenue fell 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 said that for this lower revenue level, the structures of the Peripherals business remain too complex and too costly, while the market environment remains challenging.
As part of the Blossom program, Cherry will simplify its organization and reduce the number of jobs. The job cuts will be implemented in line with local law and in close consultation with employee representatives. The 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. 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."
The restructuring is significant for the company and its stakeholders, as it aims to secure the long-term viability of Cherry's core Peripherals business, which produces computer input devices such as keyboards, mice, microphones, and headsets for office, gaming, and industry applications. The job reductions, while necessary for profitability, will affect employees and local communities. The success of the transformation will determine Cherry's ability to compete in a challenging market and invest in future growth.
Separately, Cherry's 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. 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.
