Subway Layoffs 2020: 300 Employees Cuts As Sandwich Chain Looks To Streamline Operations

Struggling restaurant chain Subway is laying off 300 employees from its headquarters in Milford, Connecticut, as it looks to streamline its operations.

The company, which has seen decline sales and closed 2,200 locations in the last two years, is undergoing a series of changes to rejuvenate its business, Restaurant Business reported. Subway has reportedly felt the financial pinch after the departure from its $5 footlong promotion and the criminal charges against Subway spokesperson, Jared Fogle.

Subway confirmed the layoffs in an email to the news outlet, saying the job cuts would enable it to respond more quickly to changes. Local news reports indicated that that police were called to escort employees out of Subway’s headquarter location.

In a statement to Restaurant Business, Alan Marcus, senior director of public relations at Subway, said, “A reduction in workforce is never an easy decision but streamlining and simplifying our business with a smaller and nimbler workforce will help us react quickly to the changing needs of the business. We must do what we can to fully support our owners and our guests in every neighborhood in which we do business.

“Our focus remains on ensuring Subway guests get great service and value at every restaurant they visit, our franchise owners get the full support and tools they need to help them grow and be successful and that we strengthen our overall business performance. In order to deliver on that strategy, a difficult decision was made to eliminate approximately 300 positions at our global HQ in Milford, Conn,” he added.

In 2015, Subway had 27,103 restaurants under its umbrella, which has reportedly decreased by 13% since that time. New CEO, John Chidsey, was appointed in November with several key changes made to the sandwich chain’s executive team in recent months.

According to Restaurant Business, Subway is expected to finish the year with less than $10 billion in U.S. system sales. This would be the first time that Subway fell below the $10 billion mark since 2001.