Whitbread Faces Protests Over Plans to Cut 1,500 UK Jobs at Annual General Meeting
Whitbread, the owner of Premier Inn and several restaurant chains, is facing backlash at its annual general meeting over its recent announcement to cut 1,500 jobs in the UK. The demonstration will take place this afternoon outside the company’s headquarters in Dunstable.
Despite reporting a “strong performance” in the first quarter of the year with a 1% increase in sales to £739 million, the company’s decision to cut jobs has sparked outrage. This decision was made public on the same day as Whitbread’s annual profits of £561 million, a 36% rise.
Whitbread has stated that the job cuts are necessary in order to build more hotel rooms and reduce their chain of branded restaurants by over 200. In a trading update released on Tuesday, the company expressed confidence in its outlook for the year, citing a strong commercial program and progress on cost efficiencies.
However, the union Unite, which is not formally recognized by Whitbread, has accused the company of failing to properly consult with staff and answer important questions regarding the redundancy process. Some employees, who live in company-provided accommodation, may also be affected by the job cuts.
Sharon Graham, the general secretary of Unite, has condemned Whitbread’s actions, stating, “Rarely is a company so shameless as to celebrate leaping profits and dividends by announcing mass job cuts. But generating runaway profits while trampling workers is business as usual for Whitbread.” She adds that Unite will hold the company accountable and provide support to impacted members.
One Whitbread employee, who wishes to remain anonymous, shared their concerns about the job cuts, stating, “I feel I can speak for quite a few people when I say we’re all scared of what is coming. There are people out there not only losing their jobs but their homes too, and there is little to no support from head office.”
A spokesperson for Whitbread has responded to the allegations, stating, “We do not accept these allegations. The consultation process is still ongoing, and we are actively seeking alternative opportunities for those affected through our existing recruitment process, which hires around 15,000 employees each year. We expect to retain a significant proportion of our employees and are providing dedicated support to our teams during this time.”
In other business news, train season ticket use has collapsed, and retailers are targeting football fans as grocery inflation eases. Additionally, a recent report shows that business investment in the UK is at the bottom of the G7 nations.