Issy-les-Moulineaux, France-headquartered food management services firm Sodexo has lowered its growth guidance for its 2025 fiscal year and is laying off employees in the U.S.
The provider of food services to companies, hospitals, schools, universities, stadiums, and more revised its guidance to between 3 percent and 4 percent for its 2025 fiscal year, which is down from its initial guidance of between 5.5 percent and 6.5 percent. This comes after the firm’s net profit sank 12.5 percent year over year in its third fiscal quarter of 2025 to EUR 434 million (USD 508 million).
However, the company’s revenues rose 3.1 percent to EUR 12.5 billion (USD 14.6 billion) in the period, while operating profit increased 6.4 percent.
"Our Q3 organic growth is in line with expectations and reflects the continuation of recent dynamics,” Sodexo Chairwoman and CEO Sophie Bellon said. “We are making steady progress on key contract ramp-ups and benefiting from sustained pricing discipline and business momentum across our core markets.”
Sodexo also recently said in a Worker Adjustment and Retraining Notification (WARN) notice that it would be closing its foodservice operations in Colorado Springs, Colorado, U.S.A., and would lay off 152 local employees, according to The Gazette.
The Colorado layoffs are just the most recent in a slew of layoffs from Sodexo, which cut around 300 employees after losing a foodservice contract at Howard University in Washington, D.C., per the Washington Business Journal.
In April, Sodexo also laid off around 130 people in Decorah, Iowa, due to losing its contract with Luther College. Additionally, Sodexo warned that it may soon lose its contract with the Louisiana Stadium and Exposition District, which oversees the 83,000-seat Caesars Superdome in New Orleans, Louisiana, U.S.A.
Sodexo’s primary competitor, Aramark, appears to be benefitting from Sodexo’s losses.
"We are experiencing very positive business trends across the company as we head into the second half of our fiscal year, including record retention rates, significant new client wins, and monthly revenue growth acceleration," Aramark CEO John Zillmer said. "We are effectively managing fluctuations in the broader marketplace, and we have a proven track record of benefiting from a highly resilient business model, given the breadth and depth of our portfolio.”
