Cherry SE, the Munich-based manufacturer of computer input devices, has announced the next phase of its transformation program Blossom, which will fundamentally restructure its Peripherals business to return it to sustainable profitability. The decision follows solid margin improvements in recent quarters, but the company acknowledges that its current structures remain too complex and costly for the lower revenue level it now operates at.
According to preliminary and unaudited figures, Cherry 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 with EUR -11.9 million in the same period of 2025. However, 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. For this lower revenue level, the company said, the structures of the Peripherals business remain too complex and too costly, while 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, alongside 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 investors and employees alike, as it signals a decisive move to align costs with a smaller revenue base after years of margin pressure. Cherry, which employs staff in development, services, logistics and production sites in Germany, China and Austria, as well as multiple sales offices worldwide, will need to execute the job cuts carefully to maintain operational continuity. The news was first announced via NEWMEDIAWIRE, and further details are available in the original release on www.newmediawire.com. For more information, visit the company’s investor relations page at https://ir.cherry.de/en.
