Franchisees are concerned after Subway’s new CEO John Chidsey reportedly slashed prices. FBN’s Lauren Simonetti with more.
Subway’s latest round of layoffs was so massive that the city where it’s headquartered announced a job fair almost immediately after, according to multiple reports.
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The restaurant chain dismissed 300 people at its head office in Milford, Connecticut, representing approximately a quarter of its staff. The move comes as part of a series of shakeups at the brand as it struggles to maintain positive sales.
Subway is “streamlining and simplifying our business with a smaller and nimbler workforce that will help us react quickly to the changing needs of the business,” a spokesman told the New York Post last week. “In order to deliver on that strategy, a difficult decision was made to eliminate approximately 300 positions at our Global HQ in Milford, Connecticut.”
In response to the cuts, Milford Mayor Ben Blake, along with State Sen. James Maroney and Rep. Kim Rose, announced the Career Assistance Program will host a job fair for displaced workers Feb. 20 from 11 a.m. to 2 p.m. at the Parsons Memorial Gymnasium.
“I am disappointed to hear of the layoffs at Subway. This impacts our neighbors, friends and family,” Blake told Patch.com Monday. “The City is prepared and committed to working with Subway and the Department of Labor, amongst other organizations, to ensure a pathway for continued employment through resume assistance, job fairs and more.
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“From my understanding, this downsizing is part of a long-term plan to improve efficiencies and performance within the company. I am hopeful that the end result will mean future growth for the company, making way for new opportunities in Milford and beyond.”
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Subway has closed thousands of stores in the past three years and saw a 25 percent fall in business from 2012 to 2016, according to Business Insider. In January, it let go of Chief Brand and Innovation Officer Len Van Popering, explaining on QSR that it is “streamlining the business by pushing talent closer to regions in which it does business.”
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Prior to that, three other top executives — Chief Development Officer Don Fertman, Chief Financial Officer Dave Worroll and Senior Vice President of international Operations Ian Martin — announced they were leaving by way of retirement or reorganization.
Subway did not immediately respond to a request for comment from FOX Business.
