, UK

Costa Coffee says up to 1,650 roles at risk of being cut as it feels COVID-19 hit

The firm is consulting with staff to try to find roles in other parts of the business for those facing redundancy.

Costa Coffee warned that up to 1,650 roles are at risk of being cut, as it reels from the “challenging” impact of COVID-19.

"Our baristas are the heart of the Costa business and I am truly sorry that many now face uncertainty following today's news," said Neil Lake, managing director for Costa Coffee UK and Ireland.

The company suggested the role of assistant store manager will be removed in branches across the UK.

Despite benefiting from measures such as the government's cut in VAT for the hospitality industry and the Eat Out to Help Out scheme, the company said there remain “high levels of uncertainty as to when trade will recover to pre-Covid levels."

It added that it had already frozen all pay increases within its support centre and cut all non-essential expenditure.

Costa Coffee employs 16,000 people in its wholly owned coffee shops, with a further 10,500 people working in its franchise network.

"We have had to make these difficult decisions to protect the business and ensure we safeguard as many jobs as possible for our 16,000 team members, whilst emerging stronger, ready for future growth", the company added.

In a separate announcement, the chain also launched an 8oz mini coffee, introducing a fourth size option to the beverage range, available at its coffee shops nationwide. It also expanded its value meal deal selection.

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