Cherry SE 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 the business remains too complex and costly for its current revenue level. As part of the restructuring, Cherry will simplify its organization and reduce the number of jobs, implementing the cuts in line with local law and in close consultation with employee representatives.
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. 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. The company noted that the market environment remains challenging.
The Blossom program includes four growth initiatives in the Americas, EMEA, and APAC regions, as well as in the Security & Industry product segment, and a fundamental redesign of the cost structure. 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.”
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. 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. For more information, visit https://ir.cherry.de/en. The original release is available on www.newmediawire.com.
