Costa to cut a tenth of jobs, with 1,650 posts at risk

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Around one in 10 jobs at coffee chain Costa are set to be lost as the company became the latest to count the loss of trade during the coronavirus outbreak.

The company, which was bought by Coca Cola two years ago, told staff on Thursday that it has started consultation over 1,650 redundancies.

The chain follows rivals Pret A Manger, which is cutting slashing 2,800 roles as part of a restructure of its UK business.

Costa closed nearly all of its 2,700 UK stores for six weeks during the pandemic but had now reopened around 2,400 sites.

The Coca Cola-owned chain said trade is “returning” after being boosted by the Government’s VAT reduction on food and non-alcoholic drinks and the recent Eat Out to Help Out scheme.

However, it said the proposed job cuts had been driven by “high levels of uncertainty as to when trade will recover to pre-Covid levels”.

Neil Lake, managing director for Costa Coffee UK and Ireland, said: “Today’s announcement to our store teams was an extremely difficult decision to make.

“Our baristas are the heart of the Costa business and I am truly sorry that many now face uncertainty following today’s news.

“We have had to make these difficult decisions to protect the business and ensure we safeguard as many jobs as possible for our 16,000 team members, whilst emerging stronger ready for future growth.

“As a proud member of the UK high street, we remain committed to the role Costa plays in supporting the economic recovery of the country, but today I want to say a huge thank you to all of our team members that are affected by this announcement and we will be supporting you throughout this process.”


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