Costa Coffee is set to cut 1,650 jobs, which equates to one in 10 jobs, as the coffee shop group looks to cut costs.
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.
Costa closed nearly all 2,700 of its UK stores for six weeks during the pandemic. Since May, stores have been reopening as safely and as quickly as possible, with over 2,400 stores now trading. While trade is returning, helped by the Government’s VAT reduction, which Costa passed on to customers in full, and the recent Eat Out To Help Out scheme, there remain high levels of uncertainty as to when trade will recover to pre-COVID levels.
Throughout the pandemic, Costa has taken decisive action to provide, where possible, financial support and to look after team members. While stores were closed, all team members were put on the furlough scheme helpfully provided by the Government, with their salary topped up by Costa to 100% for 12 weeks.
When reviewing roles within stores, a number of options were reviewed prior to making the difficult decision to launch today’s consultation. Costa has made significant investments in safely accelerating the re-opening of stores, ensuring they are safe for customers and team members and made the difficult decision to freeze all pay increases within the Support Centre and cut all non-essential expenditure.
Unfortunately, despite making these changes, Costa must take additional action, including announcing today’s consultation, which puts 1,650 roles at risk of redundancy. Costa will seek to find those at-risk alternative roles within the business where possible, and for those leaving the business, support will be provided to help with the transition to new employment.
Neil Lake, Managing Director for Costa Coffee UK and Ireland, said, “Today’s announcement to our store teams was an extremely difficult decision to make. Our baristas are the heart of the Costa business and I am truly sorry that many now face uncertainty following today’s news.
“We have had to make these difficult decisions to protect the business and ensure we safeguard as many jobs as possible for our 16,000 team members, whilst emerging stronger ready for future growth.
“As a proud member of the UK high street, we remain committed to the role Costa plays in supporting the economic recovery of the country, but today I want to say a huge thank you to all of our team members that are affected by this announcement and we will be supporting you throughout this process.”