Freddie’s Flowers has announced significant staff cuts following another year of revenue decline, prioritising profitability over growth.
- The flower subscription service reduced its headcount by over a quarter, with total staff now just above 200.
- Annual revenues for the company fell by 8.2% to £35.7 million in the year ending August 2024.
- The business reduced pre-tax losses to below £1 million, following a surge during the pandemic.
- Founder Freddie Garland has shifted focus to UK and Germany operations, pulling out from California and the Netherlands.
Freddie’s Flowers has taken decisive action in response to financial challenges by reducing its workforce. The company has cut more than a quarter of its staff, with the current headcount standing at just over 200, down from 271 the previous year. This move represents a significant downsizing for the London-based flower subscription service, equating to a nearly 60% reduction compared to the figures seen in 2022.
The company’s financial performance for the year ending August 2024 indicates an 8.2% decline in revenues, bringing the total down to £35.7 million. This follows a broader trend of declining sales, marking the second consecutive year of revenue decrease. Despite the downturn, Freddie’s Flowers has managed to lower pre-tax losses from £2 million to under £1 million, suggesting a concerted effort to control costs and improve financial health.
The period of strong customer demand experienced during the pandemic has receded as consumer behaviours returned to pre-pandemic norms. As a result, Freddie’s Flowers has reassessed its business strategy, shifting its focus from growth to profitability. The company expressed satisfaction with having met its aim of breaking even while continuing to invest in potential growth initiatives. It remains optimistic that these initiatives will lead to growth in the coming years while maintaining a strict focus on profitability.
Founded by Freddie Garland, the company initially captured media attention in 2020 through the introduction of ‘flower bonds’, which allowed regular customers to invest. These bonds have now matured, and Garland had aimed to use the proceeds for international expansion. However, recent strategic adjustments include retracting from operations in California and the Netherlands to concentrate on the UK and Germany markets.
Freddie’s Flowers is navigating challenging economic conditions with a focused strategy on stabilising and boosting future growth.
