Yelloh to Lay Off 750 Employees and Close 90 Delivery Centers Nationwide
Amid economic turmoil and rising operational costs, the food delivery business known for its iconic yellow trucks will start closing centers from December 8, maintaining service only in 18 states delivered via UPS elsewhere.
- Yelloh, a food delivery business formerly known as Schwan’s Home Delivery, is laying off 750 employees and closing 90 national delivery centers amid economic challenges and increasing operational costs.
- Despite the efforts to transform the company into a modern category leader in a post-pandemic world, Yelloh has decided to close locations, a decision faced by many retail businesses.
- Starting from December 8, Yelloh will continue its services only in 18 states including Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Pennsylvania, South Dakota, Texas, Vermont, West Virginia and Wisconsin.
- Customers outside of these 18 states will receive deliveries via UPS instead of Yelloh's iconic yellow trucks.
- In 2018, the Schwan family sold a 70% share of its business to Korean firm CJ CheilJedang for $1.8 billion, but kept the Schwan’s Home Delivery business, rebranding it as Yelloh last year.