If you've used a modern mechanical keyboard before, you likely have Cherry to thank—mostly for the switch design it pioneered before a flood of cheaper alternatives from China flooded the market when the MX switch patent expired in 2014. In the years since then, Cherry has not had an easy time of things, with the peripherals maker earlier this year announcing that it was moving much of its switch production to a factory in China in an effort to save costs. Despite this move, launching a slew of new switches and office and gaming peripherals earlier this year, and even buying Xtrfy in 2022, it seems as though Cherry still has a profitability problem.

According to recently published notes from an extraordinary general meeting (via Heise), Cherry made a net loss of €20.4 million between January and September 2025, prompting two actions from the company's leadership. For starters, Cherry has officially completed moving all of its switch production to China—a process which it had already started earlier this year—leaving the headquarters in Auerbach, Germany to operate as a development, logistics, and service center. In addition to completing the move to Chinese factories for production, Cherry is currently looking to sell off some of its subsidiaries—specifically its peripherals business, responsible for the manufacturing of all office and gaming keyboards and mice, or its Digital Health & Solutions division. The CFO, Jurjen Jongma, commented that "it is currently neither possible nor advisable to strengthen the group's equity in any other way than through strategic mergers and acquisitions options."

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