Yelloh to cut 90 delivery centers, 750 employees
MARSHALL — The former Schwan’s Home Delivery service announced this week that it will be laying off 750 employees nationwide. In a statement released Wednesday, Yelloh said it will be focusing on food delivery operations in 18 states. The move will mean the closure of about 90 delivery centers, Yelloh said.
Affected locations would close by early December, Yelloh said.
“Facing economic headwinds, rising business costs and the post-pandemic world, our teams across the country have worked valiantly to transform our company,” the Bloomington-based company said in Wednesday’s statement. “Despite those efforts . . . we must now close locations and face a difficult reality.”
Yelloh said starting Dec. 8, its yellow truck operations would be focused on neighborhoods in Delaware, Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Missouri, New York, Ohio, Pennsylvania, South Dakota, Texas, Vermont, West Virginia and Wisconsin.
“This is a heartbreaking decision for our company, because we cherish our customers, our employees, and the special role our team members play in our local communities,” Yelloh’s statement said. “Concentrating our high-touch delivery service in fewer locations – in states that are the foundation for our 70-year-old company – is the best path forward for Yelloh.”
The change would affect about 750 Yelloh employees in the comopany’s sales, field and corporate teams, the statement said. Yelloh would be providing employees with 60-day notice and pay.
Customers across the U.S. would still be able to order from Yelloh by using the company’s app, ordering online, or calling to receive products via UPS, the statement said.
The first Schwan’s home delivery was made in 1952. In 2018, the Schwan family sold a 70% share of their business to CJ CheilJedang, but kept the Schwan’s Home Delivery portion of the business. Last year, the business rebranded as Yelloh, in a nod to the company’s yellow delivery trucks.



