The owner of the Premier Inn chain of hotels and Brewers Fayre restaurants has announced plans to cut 6,000 jobs.
Whitbread said it had begun consultations with staff and hoped the majority of the proposed cuts could be made voluntarily as it outlined a collapse in sales during the coronavirus crisis.
It reported that sales during the first half of its financial year to 27 August fell by almost 80% as a result of the lockdown that forced the closure of most sites.
But it said its accommodation division was performing ahead of the market since re-opening while its restaurant brands, Whitbread reported, were “boosted by the positive impact of the Eat Out To Help Out scheme”.
It said August UK total sales improved to be 38.5% down year-on-year.
The company said its job cut proposals reflected forecasts of continuing subdued demand, as the government prepares to place new curbs on the hospitality sector to tackle surging COVID-19 infection rates.
It also cited the looming conclusion to the Job Retention Scheme – due to be wound down completely at the end of next month.
Whitbread said of its plans: “These changes create a more flexible labour model that can adapt with changes in the demand environment going forward. Our priority is to ensure that the process is fair and that impacted colleagues are supported throughout”.