CoronavirusJob MarketNews

Johnson Service Group to cut more than 1,500 jobs

Johnson Service Group is set to cut more than 1,500 jobs by the end of the year amid the continuous impact of Covid-19.

The textile service provider said, at the end of 2019 the division comprised “3,800 employees”, however this number “has reduced significantly”, through both redundancies and “natural churn”, anticipating 2,450 employees to remain by the end of year.

The firm reported 1,600 employees are currently on furlough with the majority of the remaining workforce being “flexi-furloughed” whilst working “reduced hours”.

Since the interim results announcement on 2 September 2020, the group claimed it has continued to see disruption, particularly within its hospitality sector.

The company reported its hospitality volumes held up well during September seeing a 55% rise from 45% in August. However, volumes in October saw a 45% decline of normal levels attributed to government lockdown measures across the UK.

The group said it will also continue to “preserve cash where possible” including the cost of the restructuring which will amount to almost £6m.

Peter Egan, CEO of Johnson Service Group, said: “The past three months’ performance has been a mixed picture across the Group reflecting current market conditions.

“With the Workwear business currently seeing volumes having returned to pre-Covid levels, whilst the focus within the HORECA business has been to manage the cost base and ensure we are ready once volumes in the UK’s hotel, restaurant and catering markets resume in the coming months.”

He added: “I have nothing but admiration for the way in which our employees have risen to the many challenges posed by Covid-19. I thank them for the commitment, hard work and resilience they have demonstrated which has enabled our businesses to continue to operate and to service our customers effectively.”

“We have taken the right steps to manage our cost base and maintain a firm foundation for JSG, with the strength of balance sheet and flexibility of resources and operations to provide for future strong returns when the recovery emerges.”



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