Costa Coffee to cut up to 1,650 jobs in latest Covid-19 hit
Costa Coffee today said it will cut up to 1,650 jobs as a result of the coronavirus crisis.
The cuts, which are equivalent to roughly 10 per cent of the company’s workforce, mark the latest blow to the UK economy.
The high street coffee chain was forced to close almost all of its 2,700 UK stores for six weeks during the Covid-19 lockdown.
Costa said the majority of its branches had now reopened and sales were recovering thanks to the government’s VAT reduction and Eat Out to Help Out scheme.
But the company said it had been forced to open a consultation putting 1,650 roles at risk of redundancy.
“Today’s announcement to our store teams was an extremely difficult decision to make,” said Neil Lake, managing director for Costa Coffee UK and Ireland.
“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.”
The announcement is the latest example of the grim impact of the coronavirus crisis on the UK economy.
Figures released earlier today showed that while business activity began to pick up in August, job losses in the private sector accelerated.