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BRITAIN-CATERING-JOBS-LAYOFFS -BREXIT
Caterer Compass says will axe up to 4,000 jobs
LONDON, Nov 27, 2019 (BSS/AFP) – Catering giant Compass on Tuesday said it
planned to cut up to 4,000 jobs owing to a deteriorating European outlook and
as it warned over Brexit’s impact.
“There will be… no more than 4,000 job cuts” over the next two years, or
less than one percent of Compass’ global workforce, a spokesman told AFP
after the company said it would look to cut costs after a drop in annual
profits.
“There is some weakness in some key European markets like Germany, France
and the UK,” the spokesman said.
“Key manufacturing clients are laying off people.”
Compass, which supplies contract catering services to offices, schools,
hospitals and sports centres, employs 600,000 staff worldwide.
The group on Tuesday revealed that net profit fell almost two percent to
o1.11 billion ($1.4 billion, 1.3 billion euros) in the 12 months to the end
of September, compared with o1.13 billion last time around.
Revenues rose more than six percent to o24.9 billion.
“Despite this good performance, we are not immune to the macro
environment,” chief executive Dominic Blakemore said in the results
statement.
“Deteriorating business and consumer confidence in Europe has impacted”
the group.
“Given these trends, we are taking prompt action in Europe” and elsewhere
“to capitalise on future growth opportunities”.
Turning to Brexit, Compass warned over the impact of Britain’s scheduled
departure from the European Union at the end of January.
“We have identified a potential impact on our food supply chain in the UK
relating to Brexit,” it said.
Compass pointed to “potential increased import costs” from a weaker pound,
“compounded by potential new import duties and tariffs… staff shortages and
salary cost pressures”.
It added: “Where possible, we seek to absorb price increases through
operational efficiencies.”
Tuesday’s news sent Compass shares sliding 5.3 percent to 1,961 pence in
late morning deals, topping the fallers’ board on London’s rising stock
market.
“Compass Group cautioned that trading in Europe was soft, which
overshadowed the largely positive full-year numbers,” said CMC Markets
analyst David Madden.
BSS/AFP/HR/1040