Costa Coffee warns up to 1,650 jobs at risk


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Coffee chain Costa Coffee said up to 1,650 roles were at risk of being cut as it was forced to cut costs due to the impact of the coronavirus.

He says there are still “high levels of uncertainty” as to when trade will return to pre-pandemic volumes.

The company consults with staff to try to find roles in other areas of the business for those facing redundancy.

Costa Coffee said the decision to cut jobs was “extremely difficult” to make.

“Our baristas are at the heart of Costa’s business and I’m so sorry that many are now facing uncertainty as a result of today’s news,” said Neil Lake, Managing Director of Costa Coffee. UK and Ireland.

The company suggests that the role of deputy store manager will be removed from branches across the UK.

Most of its UK cafes that were closed during the lockdown have now reopened, but the impact of Covid-19 remains “difficult,” the company said in a statement.

Although it has benefited from measures such as the government’s VAT cut for the hospitality industry and the “eat out to help” program, the company said: “There remain high levels of uncertainty over when trade will return to pre-Covid levels ”.

He added that he had already frozen all salary increases within his support center and cut all non-essential expenses.

  • Warnings of “ghost towns” if offices remain empty

Costa employs 16,000 people in its wholly owned cafes and an additional 10,500 people work in its franchise network.

“We had to make these tough decisions to protect the business and secure as many jobs as possible for our 16,000 team members, while emerging stronger, ready for future growth,” the company said. .

It is the latest food and beverage company to make cuts following the lockdown and the resulting lack of buyers and office workers in city centers.

Businesses that rely on lunch or after-work commerce from the office have been particularly affected.

Last week, the sandwich chain Pret A Manger announced it would cut 3,000 jobs, or a third of its workforce.

Julie Palmer, a partner at the recovery company, Begbies Traynor, said many companies are currently trying to cut costs.

“Some companies are trying to work with local councils to use outdoor spaces where consumers feel more comfortable, but as winter approaches they are running out of time,” she commented. .

“It is likely that, as companies try to recoup their losses of the past few months, many more will follow a similar lawsuit at Costa Coffee. “


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