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- Greggs to slash its workforce by 820 jobs due to the ongoing COVID-19 crisis.
- The British baker had reported £65.2 million of pre-tax loss in fiscal H1.
- Greggs says performance is likely to remain under pressure in the coming months.
Greggs plc (LON: GRG) warned on Friday that its performance in the coming months was likely to remain under pressure due to the Coronavirus pandemic that has so far infected more than 1.3 million people in the United Kingdom and caused over 51 thousand deaths.
Greggs closed the regular session about 1% down on Friday. On a year to date basis, shares of the company are currently about 30% down after an over 20% recovery since its low in the last week of September. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to make selection easier for you.
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Greggs has a total workforce of 25 thousand
In a bid to cushion the economic blow from the ongoing health crisis, Greggs said it plans on cutting its shop staff by 820 jobs. The British baker didn’t forecast when does it expect its performance to pick up.
Earlier this year in September, the Newcastle Upon Tyne-based company held talks with the union and employee representatives to discuss reduced staff hours in an attempt to minimise job losses. In total, Greggs currently has a workforce of 25 thousand.
Greggs is the latest in the list of companies that have resorted to job cuts this year due to the COVID-19 disruptions. The virus outbreak particularly weighed on the retail and hospitality industry in recent months with major players like Boots, John Lewis, and Marks & Spencer, having announced job cuts as well.
CEO Roger Whiteside’s comments on Friday
In a statement last week, Greggs expressed confidence that it will remain open during the second lockdown in the UK. Chief Executive Roger Whiteside commented on the job cut that was first reported by The Sun and said:
“COVID trading conditions have forced this action on to our business, and we are all very saddened by the need to part company with around 820 friends and colleagues, many of whom have worked with us for many years.”
In a report published in the last week of July, Greggs said it concluded the fiscal first half with £65.2 million of pre-tax loss.
Greggs performed fairly upbeat in the stock market last year with an annual gain of more than 75%. At the time of writing, Greggs is valued at £1.70 billion and has a price to earnings ratio of 536.38.
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