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Costa to cut 1,650 jobs

Costa to cut 1,650 jobs

Author: Abdul-Ahad Patel | Thursday 3rd September 2020

Costa to cut 1,650 jobs Photograph

Costa Coffee chains have been forced to reduce costs because of the impact of the coronavirus and as a result, 1,650 jobs are at risk of being terminated.

Costa Coffee said there are still "high levels of uncertainty" as to when the business will return to some form of normality. Costa is trying to relocate some of their employers to avoid redundancy, but unfortunately, the decision to cut some jobs is an "extremely difficult" one to make.

Neil Lake, managing director for Costa Coffee UK and Ireland said, ”our baristas are the heart of the Costa business and I am truly sorry that many now face uncertainty following today's news.”

The company said in a statement the impact of Covid-19 remains “challenging”, even with the government's cut in VAT for the hospitality industry and the "eat out to help out" scheme, Costa said, "there remain high levels of uncertainty as to when trade will recover to pre-Covid levels".

They also expressed due to these circumstances they had already frozen all pay increases within its support centre and cut all non-essential expenditure.

Costa employs 16,000 people in its coffee shops and 10,500 people working in its franchise offices. In a statement, they went on to say, "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.”

It’s a sad time to be a Costa lover.