Costa Coffee could cut 10% of its workforce over fears that trading isn’t recovering to pre-Covid levels as fast as it would like.
Up to 1,650 jobs in its cafes are at risk even though the company has now opened almost 90% of its store estate.
The chain, which is owned by Coca-Cola, put its staff on furlough during the height of the pandemic but as the scheme comes to an end it said it would be removing the assistant store manager across all shops to reduce costs.
It said that it had already frozen all pay increases within its support centre and cut non-essential expenditure.
“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,” the company said in a statement.
Neil Lake, managing director at Costa Coffee, added: “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.”