Coronavirus: Costa cuts 1,650 jobs as he struggles to recover after lockdown | Economic news

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Costa Coffee has announced a reshuffle putting up to 1,650 jobs at risk as it struggles to recover from the lockdown.

The company said it plans to remove the role of deputy store manager from its UK operations.

“The continued impact of COVID-19 remains difficult for Costa Coffee and has forced the company to make tough decisions to ensure that as many jobs as possible are protected in the long term,” Costa said in a statement. communicated.



Big cities in the UK remain empty

Costa said its cafes had reopened “in the safest and fastest possible way” since May with 2,400 now on the market, after nearly all of its 2,700 locations were closed for six weeks.

The company said trade is back, helped by the government VAT reduction and the Eat out to help but that “high levels of uncertainty remained as to when trade will return to pre-COVID levels.”

It comes after the sandwich chain Ready to eat last week it cut 2,800 jobs.

Businesses providing services in city centers have been hit hard as, despite government encouragement, the level of people come back to work in offices remained weak.

Costa said he has provided financial support to team members throughout the pandemic, including supplementing government leave grants of 80% of wages to 100%.

He said he looked at “a number of options” before deciding on his plan to cut jobs.

The company said it has made a significant investment in speeding up store re-openings while ensuring that salary increases are stuck in its support center and reducing all non-essential expenses.

“Unfortunately, despite these changes, Costa needs to take further action, including announcing today’s consultation, which puts 1,650 roles at risk of redundancy,” he said.

Costa said he would seek to find, where possible, alternate roles for those affected and support others in their search for new jobs.

Neil Lake, Managing Director of Costa Coffee UK and Ireland, said: “We have had to make these tough decisions to protect the company and ensure that we preserve as many jobs as possible for our 16,000 team members, while also emerging. stronger, ready for future growth. ”

Costa employs 16,000 people in its 1,600 wholly owned stores.

There are also 1,100 franchised outlets across the country employing 10,500 people and another 1,200 overseas.

Founded in 1971, Costa was part of the Whitbread Leisure Group for more than two decades before being sold to U.S. beverage giant Coca-Cola in a £ 3.9 billion deal struck in 2019.

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