Furloughed Marston's workers in Northamptonshire at risk as brewer looks to axe up to 2,150 jobs
and live on Freeview channel 276
Furloughed workers at Marston's pubs in Northamptonshire are at risk as the brewer is axing up to 2,150 because of the latest coronavirus restrictions.
The firm, which runs more than 20 pubs in the county, blamed the 10pm curfew, complusory masks and table-service and the new tiered system for the cuts in a trading update today (Thursday, October 15).
Advertisement
Hide AdAdvertisement
Hide AdChief executive Ralph Findlay said: “On re-opening, we set ourselves three objectives: for pubs to be safe for our guests and our people, to retain pub ambience, and for our pubs to be financially viable.
"I believe we have met those objectives. Trading has been difficult, but to operate at 90 per cent of last year on a like-for-like basis is better than our forecast, ahead of the market and a highly creditable result.
"In part, this is because most of our pubs are in suburban or community settings, and we have relatively few pubs in city centres which have been worst hit by changes in working habits.
"However, the additional restrictions which have been applied across the UK most recently present significant challenges to us and will make business more difficult for a period of time.
Advertisement
Hide AdAdvertisement
Hide Ad"I very much regret that the consequence of this is that the jobs of around 2,150 of our colleagues will be impacted, but it is an inevitable consequence of the limitations placed upon our business.
"We will be looking at our cost base further in the coming weeks."
Marston's has opened 99 per cent of its pubs and brought back 10,000 of its employees from furlough since the first lockdown lifted on July 4.
But the government's wage scheme expires at the end of this month and will be replaced with the 'job support scheme', which will top-up wages for employees who have not been able to return to work full-time.
Advertisement
Hide AdAdvertisement
Hide AdHowever, companies are expected to make a higher contribution to wages unless their business is closed under the 'very high' tier three restrictions, such as Liverpool.
Marston's claimed an increase in customer confidence in the summer from Eat Out to Help Out and the lockdown easing was undermined by the restrictions tightening last month.
Mr Findlay added: "There is much uncertainty ahead, the majority of which is outside of our control, however we will continue to focus on the safety of our teams and guests.
"Looking beyond the immediate challenges, we look forward to our future as a focused pub operator, returning to growth when trading conditions allow and realising the opportunities which are open to us over the medium to longer term."