Whitbread (LON:WTB) is expected to cut more than 100 head-office jobs, The Times has revealed. The move will come as a result of its sale of Costa Coffee to The Coca-Cola Company for £3.9 billion which completed earlier this year.
The Whitbread share price has climbed higher in London this Monday, having gained 0.93 percent to 4,884.00p as of 10:27 BST. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.03 percent higher at 7,439.69 points. The group’s shares have added just under 24 percent to their value over the past year, as compared with about a 2.3-percent gain in the Footsie.
Whitbread set to slash jobs
The Times reported this morning that Whitbread was understood to have launched a consultation process involving almost 10 percent of the employees at its head office in Dunstable, Bedfordshire. Some staff are reportedly being offered alternative jobs within the business.
A source close to the Premier Inn owner told the newspaper that the consultation was expected to be concluded this month, although up to ten people had already left the company. None of the executive committee is thought to be affected by the cuts.
The news comes after Whitbread cautioned earlier this year that it does not expect to grow profit in the financial year ending February 2020.
Analysts on Premier Inn owner
The 19 analysts offering 12-month Whitbread share price targets for the Financial Times have a median target of 4,900.00p on the shares, with a high estimate of 5,750.00p and a low estimate of 2,000.00p. As of April 12, the consensus forecast amongst 24 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.
The Premier Inn owner is scheduled to update investors on its full-year performance on April 30.