 has announced plans to cut hundreds of management roles as part of a restructuring plan. The Costa Coffee owner revealed){kind=link}
Whitbread (LON: WTB) has announced plans to cut hundreds of management roles as part of a restructuring plan.
The Costa Coffee owner revealed the plans two months after announcing plans to spin off the coffee business over the next two years.
“We’re proposing to simplify the management teams in our restaurants’ business, which will bring our structure in line with industry norms,” said a Whitbread spokesperson.
“By doing so we will create a more efficient and effective organisation, and ensure we continue to deliver our ambitious growth plans.”
“Regrettably, however, the proposed changes would result in a number of managers leaving the business. We are consulting directly with the individuals impacted and will endeavour to find them alternative positions wherever possible,” the spokesperson added.
Employees have not yet been given further details.
Elliott Advisors have said that the splitting off of Costa will allow both companies to thrive independently.
Costa chair Adam Crozier, said: “For some time, the board has been of the view that at the right time Premier Inn and Costa should be independent companies. A separation will provide enhanced focus for each business and give shareholders an investment in two high-quality businesses.”
“We will ensure that prior to separation each business is sufficiently developed and well-positioned to take advantage of the structural growth opportunities available to them in the UK and internationally.”
Last week, Whitbread said it had made “good progress” with Costa Coffee’s split from the group and continues to stick to its current forecast for this year.
In an email to Reuters, Whitbread said of the job losses: “We are consulting directly with the individuals impacted and will endeavour to find them alternative positions wherever possible.”