Subway laid off 150 employees Tuesday, including a little more than 100 at its headquarters in Milford, Connecticut.
In a statement, the company said the COVID-19 pandemic forced it to “accelerate a restructuring plan for which we had been preparing.” In addition to the layoffs, some have been reassigned for what Subway described as “better alignment and efficiencies.”
"Our focus remains on ensuring Subway guests continue to get great service and value at every restaurant they visit; our franchise owners, all small business owners, get the full support and tools they need to help them grow and be successful and that we strengthen our overall business performance,” said Alan Marcus, senior director of public relations, in an emailed statement to QSR.
The move comes three months after the sandwich chain laid off 300 workers from the corporate office. At the time, Subway said the brand was streamlining and simplifying the business with a smaller workforce to help it react quickly to the changing needs of the business.
In addition to the layoffs, Subway has made several changes to its C-suite in recent months.
In January, Subway let go of Chief Brand and Innovation Officer Len Van Popering. Subway said it was “streamlining and simplifying the business by pushing talent and expertise closer to regions in which it does business.” Illene Kolbert also replaced Bethany Appleby as chief legal officer. In March, Mike Kappitt, the former president of Carrabba’s Italian Grill, was named chief operating and insights officer.
Chief Development Officer Don Fertman and CFO Dave Worroll both announced their retirement in 2019. Ian Martin, the brand’s former SVP of international, left at the end of 2019 as part of a reorganization. CEO John Chidsey, the former chairman and CEO of Burger King Holdings, was hired in mid-November.
According to FoodServiceResults, Subway ended 2019 with 24,000 units, down from 24,798 in 2018. Total sales dropped from $10.4 billion in 2018 to $10 billion in 2019, a 3.8 percent drop. The chain’s footprint has been on the decline for a handful of years. In 2015, Subway had 27,103 locations—more than Burger King, Wendy’s, Taco Bell, and Pizza Hut combined.