Whitbread, the parent company of Premier Inn, has announced plans to cut 3,800 jobs across the UK and Ireland as part of a five-year strategy to save £250 million and revamp its restaurant operations.
The Bedfordshire-based firm said it would also reduce its capital building program by £1 billion and replace restaurant services at 197 hotels with a more efficient "integrated food and drink model" that aligns with guest preferences.
CEO Dominic Paul cited rising business rates and national insurance costs as key drivers behind the overhaul of the UK's largest hotel chain. "We've looked hard at the options open to us to maximize value creation over the medium and long-term," he said. "This has been a rigorous process, and we've approached all options with an open mind."
Whitbread, which employs around 30,000 people, stated that the plans are subject to staff consultation and expects to retain a significant number of affected employees through redeployment. The company has already made 88 roles redundant last year when it moved a call center to Egypt and cut 1,500 jobs in 2024.
These cuts follow a reported pre-tax profit of £298 million for the year ending February 26, which was 19% lower than the previous year.