The owner of Premier Inn is set to cut thousands of jobs.
Premier Inn owner to cut thousands of roles in cost-saving overhaul
Whitbread said it will reduce its workforce by around 3,800 roles across the UK and Ireland as part of a five-year plan aimed at saving £250m and restructuring its food and drink operations.
The company also confirmed it will scale back its capital building programme by £1bn and introduce a new “integrated food and drink model” across its hotels.
Under the changes, restaurants at 197 hotels will be replaced with the updated model, which Whitbread said would be more efficient and better aligned with customer preferences.
Chief executive Dominic Paul said rising costs had driven the decision.
He said: “We've looked hard at the options open to us to maximise value creation over the medium and long-term. This has been a rigorous process and we've approached all options with an open mind. Our new five-year plan builds on our strengths and drives a significant acceleration of our strategy.”
Whitbread, which employs around 30,000 people, said the proposals are subject to consultation and that it expects to retain a significant number of affected staff through redeployment.
The announcement follows earlier job reductions, including 1,500 roles cut in 2024 and 88 redundancies linked to the relocation of a call centre overseas.
The company reported a pre-tax profit of £298m for the year to 26 February, down 19% compared with the previous year.
The changes mark a significant shift for Premier Inn, the UK’s largest hotel chain, as it responds to increasing operating costs including business rates and national insurance contributions.