Gousto has announced plans to shut down one of its production warehouses in Lincolnshire, a move that places 290 jobs at risk.
The meal-kit provider stated that the closure is necessary to enhance operational efficiency, citing the duplication of efforts inherent in running two separate facilities.
The company intends to consolidate its manufacturing operations into a single site to streamline logistics and reduce overhead costs.
The restructuring comes as Gousto faces mounting pressure in a highly competitive market.
The firm is actively fending off rivals such as Hello Fresh and Mindful Chef, which have been gaining traction in the UK meal-kit sector.
By consolidating its physical footprint, Gousto aims to improve its cost structure and better position itself against competitors who have already optimized their supply chains.