Whitbread will cut about 3,800 jobs in the UK and Ireland as it closes all Beefeater and Brewers Fayre restaurants. This marks a major shift in its business strategy towards becoming a pure hotel company.
As of early Tuesday, the company confirmed that these closures would affect approximately 12% of its 30,000-strong workforce. Whitbread plans to convert some of the closed restaurants into hotel rooms.
Whitbread has faced pressure from an activist investor since November 2025, prompting a review of its operations. The company aims to recycle £1.5 billion to fund future growth while addressing flat revenues reported for the year ending February 26.
The Beefeater brand has been part of Whitbread since 1974. The Unite union is actively seeking consultations regarding the impending job cuts.
In response to these developments, a Whitbread spokesperson stated, “We will do all we can to support those colleagues affected.” They also mentioned that they expect to retain a significant proportion of those impacted by the changes.
Colenzo Jarrett-Thorpe from Unite criticized the announcement, saying, “It is disgraceful that Whitbread employees heard about the job cuts through the media.” The proposed changes are part of Whitbread’s new five-year plan.
The closures will eliminate 197 remaining restaurants and create an additional 600 Premier Inn rooms. This strategic pivot reflects ongoing challenges in the restaurant sector amid rising costs.
Whitbread’s stock has dropped by 20% over the past six months due to these pressures. The company typically hires around 15,000 people each year but now faces significant restructuring challenges.