Premier Inn owner to reduce workforce by nearly 20% with 6,000 redundancies

A national hotel chain owner has today announced that up to 6,000 jobs across the UK and Germany are set to be cut.

Whitbread, which owns Premier Inn, said that it is entering a consultation process about the redundancies, following a “subdued” outlook for the rest of the year and the end of the government’s furlough scheme.

The company also owns restaurant brands Beefeater, Brewers Fayre, Table Table and Bar + Block.

The redundancies would affect 18 per cent of the group’s current workforce, and it aims for a “significant proportion” of these to be voluntary.

It said that the process will allow it to emerge from the pandemic with a lower cost base, a more flexible operating model, and a more resilient business.

Alison Brittain, CEO of Whitbread, commented: “Our performance following the reopenings has been ahead of the market, however, it has been clear from the beginning of this crisis that even as restrictions are eased and hospitality businesses such as ours reopen their doors, that demand would be materially lower than FY20 levels for a period of time.

“Given this backdrop, we have already taken extensive action to protect the business, retain financial flexibility and position it for long-term success.

“We continue to work hard to ensure that we emerge from the crisis with a more flexible operating model and a stronger, more resilient business.

“With demand for travel remaining subdued, we are now having to make some very difficult decisions, and it is with great regret that today we are announcing our intention to enter into a consultation process that could result in up to 6,000 redundancies in the UK, of which it is hoped that a significant proportion can be achieved voluntarily.

“In line with our longstanding values of treating our people fairly, our priority is now to ensure that this process is clear and transparent for all colleagues and that everyone impacted is supported throughout.”

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