Costa warns 1,650 staff at risk amid uncertainty over future of trade
Cafe chain Costa has said 1,650 staff are at risk of redundancy as it looks to cut costs amid continued uncer taint y over when trade will fully recover following the pandemic.
It told staff yesterday that it has star ted consultations which could affect more than a tenth of roles.
The move comes a week after rival Pret A Manger revealed it was slashing 2,800 jobs as part of a restructure of its UK business.
Costa closed nearly all of its 2,700 UK stores for six weeks during the pandemic but has now reopened around 2,400 sites.
The Coca Cola-owned chain said trade is “returning” after being boosted by the government’s VAT reduction on food and non-alcoholic drinks and the recent Eat Out To Help Out scheme.
However, it said the proposed job cuts had been driven by “high levels of uncertainty as to when trade will recover to pre-covid levels”.
The restructuring proposes removal of the assistant store manager role across its UK business.
Costa stressed that it will seek to find those at risk alternative jobs in the business where possible, and provide support for those leaving.
The company has also frozen all pay increases.