Search
The Caterer

Whitbread to axe jobs in a bid to streamline company

25 October 2005
Whitbread to axe jobs in a bid to streamline company

Hotel and leisure company Whitbread has slashed more than a quarter of head-office jobs in a bid to streamline its business, the company announced today.

In its half year results to 1 September 2005, Whitbread said that it would be removing 250 brand and corporate roles from its head offices, resulting in £25m-worth of savings.

Chief executive Alan Parker said that the company had already made senior management changes to make it "a new and leaner organisation".

He said the new job cuts were a result of maximising the Group's economies of scale across its shared services, such as property, finance, human resources, information services and communications.

In its latest financial figures, Parker said that its high-street brands Pizza Hut and TGI Fridays have struggled in the past six months suffering from "disappointing sales".

The overall performance of this division was boosted by a strong performance from Costa, which is expected to grow by 100 sites this year. Revenue for the sector was £112.1m, an increase from £105.5m against the same period the previous year.

Revenue for its pub restaurants was £315.6m up from £305.5m for the same period last year, but like-for-like sales were down by 1.2%, due to increasing utilities and staff costs.

Its hotel division performed well with Premier Travel Inn growing strongly following its integration. Revenue was up by £67.2m to £206.9m for the same period last year. Like-for-like sales were up by 7.7% to £71.8m.

By Emily Manson

Get your copy of Caterer and Hotelkeeper every week - click here to subscribe and save 25%.

Sudoku Join the craze and play Sudoku online!
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.