Costa Coffee is following the likes of Pret A Manger and Upper Crust in making major cuts to its workforce to cope with the downturn in trade as a result of the lack of shoppers, tourists, and office workers in towns and cities during the pandemic.
Up to 1,650 jobs are at risk, with the Coca-Cola-owned business planning to axe the role of assistant store manager across its UK estate as part of cost-cutting measures.
A statement from Costa said: “The ongoing impact of COVID-19 remains challenging for Costa Coffee and has required the business to make difficult decisions to ensure that as many jobs as possible are protected long-term.”
2,400 of its 2,700 sites have reopened since lockdown restrictions were eased. Costa said trade had been returning, helped by the government’s VAT cut and ‘Eat Out To Help Out’ scheme. However, it added that there remained “high levels of uncertainty as to when trade will recover to pre-COVID levels”.
Last week, Pret A Manger confirmed that it was cutting more than a third of its workforce as part of a plan to save the business amid plummeting sales.
NAM Implications:
- This is about cutting to fit, before others do it on your behalf.
- And any breath-holding in anticipation of a return to pre-lockdown…
- …could be a waste of same.
- Best anticipate a 40% reduction in demand…
- …and budget accordingly.
