In order to improve efficiency, Papa John's will reduce its corporate support staff by approximately 70 positions, the company said yesterday. The pizza chain has struggled with a stale and competitive pizza segment, stalled revenue and unit growth, and increased food costs.
The company expects the layoffs to reduce costs by about $2.3 million in 2005. The company will record approximately $750,000 in fourth quarter severance, outplacement, and related costs as a result of the layoffs.
"While we are never pleased about making staff reductions, we are committed to making Papa John's as streamlined as possible while still giving our restaurants the support" they need, said Papa John's founder and chief exec John Schnatter.
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