Premier Inn owner Whitbread warns 6,000 jobs could go as UK announces new restrictions on pubs

The owner of Britain’s biggest hotel chain on Tuesday unveiled plans to slash up to 6,000 jobs just days before the UK government begins enforcing new restrictions on pubs and restaurants to contain rising coronavirus infections.



a group of people standing in front of a sign: Guests wait outside a Premier Inn hotel at Heathrow airport in London, U.K., on Friday, April 20, 2012. Whitbread Plc, the owner of Premier Inn budget lodges, reported slowing sales growth as a tough market for U.K. hotels countered an improvement in demand at its Costa Coffee shops. Photographer: Chris Ratcliffe/Bloomberg via Getty Images


© Chris Ratcliffe/Bloomberg/Getty Images
Guests wait outside a Premier Inn hotel at Heathrow airport in London, U.K., on Friday, April 20, 2012. Whitbread Plc, the owner of Premier Inn budget lodges, reported slowing sales growth as a tough market for U.K. hotels countered an improvement in demand at its Costa Coffee shops. Photographer: Chris Ratcliffe/Bloomberg via Getty Images

Whitbread, the owner of Premier Inn hotels and Beefeater restaurants, said in a statement that the layoffs could affect up to 18% of its workforce.

“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

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Premier Inn owner to cut 6,000 jobs due to pandemic hit



a sign above a store: A signage of the Premier Inn Hotel is seen outside the Durham North branch, in County Durham


© Reuters/LEE SMITH
A signage of the Premier Inn Hotel is seen outside the Durham North branch, in County Durham

By Tanishaa Nadkar

(Reuters) – Premier Inn owner Whitbread plans to cut up to 6,000 jobs at its hotels and restaurants as the COVID-19 pandemic ravages the travel and hospitality industries and the British government winds down a job support scheme.


a sign on a pole: Signages of the Premier Inn Hotel and Brewers Fayre are seen outside the Durham North branch, in County Durham


© Reuters/LEE SMITH
Signages of the Premier Inn Hotel and Brewers Fayre are seen outside the Durham North branch, in County Durham

The company said on Tuesday it had begun formal consultations on the cuts, which equate to 18% of its workforce, and expected a large proportion of them to be voluntary.

“We expect demand to remain subdued in the short to medium-term and the UK Government’s furlough scheme to come to an end in October,” Whitbread said in a statement, explaining the cuts.

Its shares were down 2.9%

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Saga cuts 1,400 jobs, former owner to back 150 million stg capital raise

(Reuters) – UK-based over-50s holidays and insurance specialist Saga SAGA.L launched a 150 million pound ($194 million) capital raising on Thursday that will see former boss Roger De Haan return as non-executive chairman after the loss of 1,400 jobs.

De Haan, the son of Saga’s founder Sidney Isaac De Haan, was chief executive before Saga was sold in 2004 to private equity group Charterhouse and will backstop the new fundraising with up to 100 million pounds ($130 million) of his own money.

“The company I sold was doing brilliantly well. I don’t know what happened…but (it) had certainly lost its way,” De Haan said on a call with reporters.

In a statement hours after the results, Saga said it has completed the bookbuild process and raised gross proceeds of about 74.8 million pounds. Bookrunners have placed 623.3 million new shares at 12 pence a piece with some shareholders, De Haan

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