Whitbread, the owner of Premier Inn, has revealed plans to cut 6,000 jobs.
The number represents 18% of the total workforce by Whitbread (LON: WTB), the group which also owns Beefeater and Brewers Fayre restaurant chains.
Sales at the group were down 77.6% in the first six months and since reopening in August, the business has remained low at Premier Inn and the restaurant chains.
“With market demand expected to remain at lower levels in the short to medium-term, we have now taken the very difficult decision to announce our intention to enter into consultation on proposals that could result in up to 6,000 redundancies for our hotel and restaurant colleagues (representing 18% of our total workforce),” said the group.
“We expect a significant proportion of these redundancies to be achieved voluntarily. Our priority now is to ensure that the process is fair and that impacted colleagues are supported throughout.”
The company added: “This is a regrettable but necessary step to ensure that we emerge from the crisis with a lower cost base, a more flexible operating model and a stronger more resilient business,” the company added.
Alison Brittain, Whitbread’s chief executive, said: “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.”
Shares in Whitbread have lost half of their value this year.
Whitbread shares (LON: WTB) are currently trading -2.57% at 2.054,75 (0808GMT).