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Costa Coffee has announced a shakeup that will put up to 1,650 jobs at risk as it struggles to recover after the shutdown.
The company said it planned to eliminate the assistant store manager role throughout its UK business.
“The continued impact of COVID-19 remains a challenge for Costa Coffee and has required the company to make difficult decisions to ensure that as many jobs as possible are protected in the long term,” Costa said in a statement.
Costa said its coffee shops had been reopening “in the safest and fastest way possible” since May, with 2,400 on the market now, after nearly all of its 2,700 locations had been closed for six weeks.
The company said trade had returned, helped by the government VAT reduction and the Eat out to help scheme, but that there remained “high levels of uncertainty as to when trade will recover to pre-COVID levels.”
Comes after the sandwich chain Ready to eat last week it said it was cutting 2,800 jobs.
Businesses that provide services in city centers have been severely affected as, despite government encouragement, the level of people going back to work in offices it has remained low.
Costa said he had been providing financial support to team members during the pandemic, including increasing government leave subsidies worth 80% of salaries to 100%.
He said he had reviewed “a number of options” before deciding on his plan to cut jobs.
The company said it had invested significantly in speeding up store reopenings while making sure they were safe, frozen salary increases at its support center and cut all non-essential expenses.
“Unfortunately, despite making these changes, Costa must take additional measures, including the announcement of today’s consultation, which puts 1,650 roles at risk of termination,” he said.
Costa said she will seek to find alternative roles where possible for those affected and will support others in their search for new jobs.
Neil Lake, Managing Director, Costa Coffee UK & Ireland, said: “We have had to make these tough decisions to protect the business and ensure we safeguard as many jobs as possible for our 16,000 team members, as we emerge stronger and ready for future growth. “
Costa employs 16,000 people in its 1,600 wholly owned stores.
There are also 1,100 franchise outlets nationwide that employ 10,500 people and another 1,200 abroad.
Founded in 1971, Costa was owned by the Whitbread Leisure Group for more than two decades. before being sold to US beverage giant Coca-Cola in a £ 3.9bn deal completed in 2019.
