- Some of the United Kingdom's biggest companies have been forced to cut thousands of jobs due to the Covid-19 pandemic
- Pizza Express has planned to close 67 of its restaurants permanently, risking 1,100 jobs
- Dixons Carphone is set to cut 800 management jobs as part of a plan to streamline the company
The coronavirus pandemic has battered the UK economy since its emergence, and no sector has remained unscathed, with more than 100,000 job cuts planned during the pandemic. The Government's furlough scheme has allowed millions of people to keep getting a paycheck, but fears are growing that when this is phased out, many will have no job to return to. With no clear outlook for the future of the business, many of the UK's biggest companies have been forced to cut thousands of jobs.
Pizza Express planning to cut 1,100 jobs
Pizza Express' proprietor is planning to permanently close 67 UK eateries as a significant aspect of enormous cost-cutting drive started due to the coronavirus pandemic. The debilitated food chain said that the business and its counsellors had undertaken a broad survey of its activities to design suitability for the future, including a site-by-site audit of each branch. Thus, around 15 per cent of its 449 UK eateries, equivalent to around 67 outlets, have been marked for shutting down, with up to 1,100 employments in danger. However, it focused that the ultimate result of the restructuring program is pending for decision.
On 4 August 2020, supervisors said the firm has come to an agreement with its secured creditors and its majority shareholder, Hony Capital, for the restructuring of the business that will reduce expenses by £144 million and assist it with revival from the pandemic. Pizza Express informed that it has additionally recruited advisers from Lazard to lead a sale process for the business. It said a voluntary company arrangement, which is a type of insolvency agreement, will allow it to review its UK estate, close the most underperforming stores and renegotiate rent costs at outlets across the country.
Pizza Express as of now has 449 restaurants in the UK. It said that, by far, most of them were performing beneficially before lockdown. Following Government's guidance for the UK hospitality sector, the entire outlets of its UK sites were shut on 23 March 2020. The Covid-19 emergency has profoundly affected hospitality sector as a whole, with the nation-wide lockdown reducing revenues significantly.
Pizza Express said that diminishing the size of its estate will assist it in protecting 9,000 employments. The decision comes after 166 restaurants propelled the Chancellor's new Eat Out to Help Out activity on 3 August 2020, giving diners 50 per cent off their suppers all through August.
About Pizza Express
Founded by Peter Boizot in 1965 because of his passion for Italian cuisine, the very first restaurant of Pizza Express was opened in Wardour Street. The company operates across diversified geography in countries like India, China, Ireland, Cyprus, Hong Kong, Kuwait, Singapore, Philippines, etc.
Eat Out to Help Out Scheme
Customers visiting the registered restaurants under the "Eat Out to Help Out Scheme" will get 50 per cent discount from 3 August 2020 to 31 August 2020 on food or non-alcoholic drinks to eat or drink in (up to a maximum of £10 discount per diner), every Monday, Tuesday and Wednesday between the above-mentioned period.
The discount will be automatically be available to the customers at participating establishments (restaurants, cafés, bars or pubs, work and school canteens and food halls). Establishments can then claim reimbursement from the Government for the discount they give to their customers.
Meanwhile, on 3 August 2020, DW Sports said up to 1,700 jobs were at risk. The travel and tourism sector continues to suffer, with Hays also announcing 900 job cuts on the same day.
To know more, do read: Job losses Continue Unabated at Major British Companies
Dixons Carphone to remove 800 managers across UK stores
Dixons Carphone, the electronics chain, which owns Currys PC World, is set to cut 800 management jobs as part of a plan to streamline the company. It became the latest high street name to shed staff in a brutal year for UK retailers. The announcement came less than five months after Dixons Carphone disclosed its plans to close all 531 of its standalone Carphone Warehouse stores in the UK, resulting in the loss of 2,900 jobs.
The company, in its latest round of cost-cutting, will be removing retail manager, assistant manager and team leader roles, introducing new sales manager, customer experience manager and operational excellence manager positions in stores.
Mark Allsop, the Chief Operating Officer of Dixons Carphone, said that he wanted to create a 'flatter management structure' to make it easy for the customers to shop with them. He also added that the proposal would ensure in-store roles are focused on giving a seamless customer experience and exceptional service across all the customer channels, whether online or in-store.
The company's profits reduced by half to £166 million for the year ending 2 May 2020, as it battled poor sales of mobile phones while revenues at its stores were hit due to coronavirus-induced restrictions.
To know more, do read: Earnings of Three Consumer Discretionary Sector Stocks- DC., BRBY and MCS
About Dixons Carphone PLC
The merger between Dixons Retail and Carphone Warehouse Group led to the formation of Dixons Carphone in 2014. It is a retailer of electrical and telecommunications and service providing company. Operating across nine countries, with 14 brands in function, the company offers its customers with options to discover and choose the right technology for themselves.
Dixons Carphone PLC (LON: DC.) stock was trading at GBX 82.35 on 5 August 2020, at 1:49 PM, up by 3.78 per cent from its previous close of GBX 79.35. The 52-week low/high price was GBX 60.00/152.45. It was having a market capitalisation (Mcap) of £925.58 million. The volume traded at the time of reporting was 619,928. The company recorded a negative return on price, which was 44.20 per cent on a YTD (Year to Date) basis.
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