British multinational hotel and restaurant giant Whitbread plc has reportedly warned over 6,000 of its employees that they may lose their jobs in the coming months. As per the credible sources, the company blames the imposition of lockdown amidst the COVID-19 pandemic, which has caused reduction in hotel guest numbers.
It is to be noted that the U.K. government’s furlough scheme, which still pays wages for around 27,000 employees at Whitbread, will be expired by September end. If sources are to be believed, decline in number of tourists and individuals sharing meals has also caused a major setback at Whitbread.
According to the company, hotel stays dropped by 50% in the month of August while the diner numbers fell by more than one third. However, they claimed to have received help from the Eat Out to Help Out scheme.
Whitbread owner Alison Brittain mentioned in a comment that the company was trying to avoid compulsory layoffs, however, the decline in demand for travel has compelled them make tough decisions.
Brittain further claimed that the Whitbread is planning to initiate a consultation process which will cause around 6,000 redundancies across United Kingdom.
The company also predicts that the demand for hospitality services will remain low across the business by the year 2021 and possibly through 2022.
Similarly, Wateford-based pub chain JD Wetherspoon has also warned around 1,000 of its employees working at airport venues. The company reportedly cautioned that half of its staff may lose their jobs due to the sharp fall in travel and tourism industry.
Chief Executive at Wetherspoon John Hutson was reported stating that the decision of furlough is majorly a result of decline in pubs’ business and due to significant reduction in passengers air travelers.
The pub chain also warned its staff that over 450 jobs in Glasgow, Birmingham, Gatwick, Stansted, Edinburgh, and Heathrow are likely to be laid-off.
Source credits-
https://www.bbc.com/news/health-54246403