Hospitality supplier Johnson Service Group axes 1,500 jobs
Johnson Service Group, a provider of workwear and hotel and restaurant linens, has announced it will shrink its headcount by around 1,500 jobs this year, as the impact of the coronavirus pandemic on the hospitality sector sweeps through the supply chain.
The Cheshire-based firm said its hotel, restaurant and catering (HRC) division had been badly impacted by the Covid-19 crisis, due to the closure of hospitality venues and the ban on large gatherings during lockdown.
The company said it expects to end 2020 with 2,450 employees in the hospitality supply unit, down from 3,800 at the end of last year.
Meanwhile it will reduce its workwear division headcount from 2,300 to 2,100, despite volumes recovering to February levels, as its industrial clients continue to suffer from the uncertainty caused by the pandemic.
The company said many of the job cuts had already taken place.
In a statement this morning Johnson Service Group said: “Whilst the news last week of a possible vaccine is encouraging, (HRC) volumes currently remain unpredictable and the timing of any sustained recovery in our market remains unknown.
“Although mindful of the current reduced volumes, we are continuing to manage the business prudently and are in ongoing discussions with many of our customers so that we are in the best position possible to scale up our operations when markets return.”
All of Johnson Service Group’s hotel, restaurant and catering sites were open until 7 November with reduced operating hours.
However since England entered its second coronavirus lockdown, it has mothballed three sites and delayed the commissioning of a new factory in Leeds.
Johnson Service Group has also permanently closed its Newmarket workwear site.