SSP Group are in the process of cutting circa 55% of their UK workforce, 5,000 jobs, in a restructuring of the business which has been severely impacted from Covid-19.
SSP are a hospitality provider in the travel sector, so the impact has been immense in each sector and compounded by both.
Operating many brands at travel hubs worldwide including Starbucks, Burger King, Upper Crust, Caffè Ritazza and Jamie Oliver restaurants, SSP is tackling with travel on hold and hospitality closed.
The owner of Upper Crust and Caffè Ritazza is to axe 5,000 UK jobs after suffering heavy losses during the coronavirus crisis lockdown.
The spectacular fall in both domestic and international travel hit SSP’s food and drink outlets at airports and railway stations across 35 countries.
Simon Smith, CEO, SSP Group said he is making the cuts to ensure the company survives. A huge departure from the glowing performance of the business that in recent years has been a model of success.
Much of the SSP workforce is currently on furlough, and like many other furloughed workforces it seems only a percentage will return.
The priority currently is to continue to preserve cash and in a statement from SSP said it is now suspending the much lauded share buyback programme. The SSP investment pipeline has been halted and senior management salaries cut by circa 30%.
This news follows in the path of what has already been a dark week in workforce reductions announced by major businesses in travel and hospitality. Both are severely impacted, to be in either is difficult, to be in both is gruelling.
On past performance SSP has been a shining star of hospitality, we would back them to survive.
Reopening: Measure twice cut once
SSP cutting UK workforce – 1 July 2020 – SSP cutting UK workforce