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Fri 13th Nov 2020 - Greggs to cut 820 jobs, no store closures
Greggs to cut 820 jobs, no store closures: Food-to-go operator Greggs has announced plans to cut 820 jobs due to the ongoing coronavirus pandemic. The company confirmed to Propel none of its 2,000-plus shops will shut as a result. Greggs chief executive Roger Whiteside warned of job cuts in September, just months after the business reopened from the initial lockdown. Staff were asked to reduce their contracted hours to help minimise job losses. However this week, 820 employees were placed on consultation. The company employs 25,000 people and the cuts are equivalent to about 3% of the firm's total workforce. In September, Whiteside said the company had come to the conclusion 14 hours was the “lowest we can go” in terms of the minimum number of hours someone can work. But he said there would be some job losses, although “they would not be on the same scale” as those announced by Pret A Manger and UK foodservice travel hub specialist SSP. Earlier this month, Greggs confirmed it will remain open for business during lockdown but the period is likely to result in losses. In an update to employees, the company said while sales had recovered to circa 76% of prior year levels during the month of September, the latest restrictions imposed in the UK are likely to see a reduction in demand across its store network. It rolled out click and collect and delivery services in the summer to help boost sales. The rollout of its national delivery offer, in partnership with Just Eat, has been progressing at speed and the company said it was seeing “encouraging participation levels”. Greggs still expects to open a net 20 shops in 2020, predominantly in locations accessed by car.

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