Cherry SE Restructures Peripherals Business to Achieve Profitability

Cherry SE, a global manufacturer of computer input devices such as keyboards, mice, microphones, and headsets, has announced the next phase of its transformation program Blossom. Following solid margin improvements in recent quarters, the company is fundamentally restructuring its Peripherals business to return it to sustainable profitability. 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 (9M 2025: EUR -11.9 million). Group revenue declined to EUR 58.9 million (9M 2025: EUR 70.7 million), mainly due to the deliberate reduction of stock-in-channel in the Peripherals business. For this lower revenue level, the structures of this business remain too complex and too costly, and the market environment remains challenging.

Cherry is actively addressing these issues with its previously announced transformation program Blossom. In addition to four growth initiatives in the Americas, EMEA and APAC regions and in the Security & Industry product segment, the program includes a fundamental redesign of the cost structure. One of its goals 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. 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.”

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, founded in 1953, is headquartered in Germany and employs staff in development, services, logistics, and production sites in Germany, China, and Austria, as well as multiple sales offices worldwide. For more information, visit ir.cherry.de/en.