Cafe chain Costa said 1,650 employees are at risk of layoffs as they seek to cut costs amid continued uncertainty about when trade will fully recover from the pandemic.
On Thursday, he told staff that he had begun consultations that could affect more than 10% of roles.
The move comes a week after rival Pret A Manger said it was cutting 2,800 jobs as part of a restructuring of its UK business.
Costa closed nearly all of its 2,700 stores in the UK for six weeks during the pandemic, but has now reopened around 2,400 stores.
The Coca Cola-owned chain said the trade is “making a comeback” after the government cut VAT on food and soft drinks and the recent Eat Out to Help Out scheme.
(Image: PA)
However, it says the proposed job cuts were driven by “a high level of uncertainty about when trade will recover to pre-COVID levels.”
Neil Lake, Managing Director of Costa Coffee UK and Ireland, said: “Today’s announcement was an extremely difficult decision for our store team.
“Our baristas are at the heart of Costa’s business and I am truly sorry that many are now confronted with uncertainty following today’s news.
“We had to make these tough decisions to protect our business and ensure that we keep as many jobs as possible for our 16,000 team members while being stronger and more prepared for future growth.
“As a proud member of the UK’s main street, we remain committed to the role Costa plays in supporting the country’s economic recovery, but today I want to say a huge thank you to all of our team members affected by this announcement. and we will support you throughout this process. “
