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 comes after the company reported preliminary and unaudited figures showing a 7.4 percentage point increase in Group gross margin for the first nine months of 2026, alongside an improvement in adjusted Group EBITDA to EUR -6.9 million from EUR -11.9 million in the same period last year. However, Group revenue declined to EUR 58.9 million from EUR 70.7 million, largely due to a deliberate reduction of stock-in-channel in the Peripherals business. The company stated that at this lower revenue level, the structures of the Peripherals business remain too complex and too costly, and the market environment remains challenging.
As part of the restructuring, Cherry will simplify its organization, reduce the number of jobs, and create a leaner organization with fewer layers and clear ownership that fits the current revenue level. The job reductions will be implemented in line with local law and in close consultation with employee representatives. The company expects the Peripherals business to be operationally profitable from 2027. CEO Rogier Volmer commented, “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 transformation program Blossom also includes four growth initiatives in the Americas, EMEA and APAC regions and in the Security & Industry product segment. These initiatives are designed to free up funds for investment in growth areas. The restructuring is seen as a necessary step to adapt the company’s cost base to the current revenue level and to ensure long-term competitiveness in the peripherals market.
Separately, Cherry’s Digital Health & Solutions business continues to develop positively, with revenue increasing by around 37% to EUR 8.9 million in the first half of 2026. The sale process for this business is continuing as planned. Cherry SE is a global manufacturer of computer input devices such as keyboards, mice, microphones, and headsets for office, gaming, and industry applications, as well as hardware and software solutions in digital healthcare. Founded in 1953, the company has operational headquarters in Germany and employs staff in development, services, logistics, and production sites in Germany, China, and Austria, as well as sales offices in multiple countries. For more information, visit https://ir.cherry.de/en. The original release is available on www.newmediawire.com.
