Subway cuts 300 corporate employees as part of major 'streamlining' plan

'They haven't found their footing,' restaurant analyst Tim Powell of Foodservice IP says of recent downsizing efforts at the quick service restaurant chain


Nancy Luna, Nation's Restaurant News 

Feb 06, 2020


Embattled sandwich chain Subway, which has closed hundreds of restaurants over the last two years and seen top leaders exit, has laid off 300 corporate employees at its headquarters.


“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,” Alan Marcus, senior director of public relations, said in a statement.


Marcus did not elaborate on the changing needs of the business, only stating that the company needs to focus on its locally-owned franchised restaurants.


“We must do what we can to fully support our owners and our guests in every neighborhood in which we do business,” Marcus stated. “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.”


Restaurant consultant Tim Powell said focusing on “location and consistency of product” is good because that’s always been Subway's wheelhouse.


“This is their strength,” he said. “I think their ‘eat healthy’ mantra continues to resonate through the culture while other competitors have taken that position.”


From a marketing standpoint, the Milford, Conn.-based company has taken a long time to regroup after it cut ties with former spokesman Jared Fogle, he added.


“They haven't found their footing,” said Powell, managing principal at industry consultancy Foodservice IP in Chicago. “From a macro standpoint, we see menu prices increasing while traffic continues to slide in the US. Many concepts will be facing this tough economy this year.”


The Subway layoffs come after a recent round of downsizing at corporate involving top leaders...


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