Costa Coffee is to cut 1,650 jobs in the UK as coronavirus hurt trading at the business.
The coffee chain said it had seen some improvement in trading since May but it was not enough to prevent job losses.
Costa closed nearly all 2,700 of its UK stores for six weeks during the pandemic. Since May, stores have been re-opening with over 2,400 stores now trading.
Neil Lake, managing director for Costa Coffee UK and Ireland, said: “Today’s announcement to our store teams was an extremely difficult decision to make. Our baristas are the heart of the Costa business and I am truly sorry that many now face uncertainty following today’s news.
“We have had to make these difficult decisions to protect the business and ensure we safeguard as many jobs as possible for our 16,000 team members, whilst emerging stronger ready for future growth.
“As a proud member of the UK high street, we remain committed to the role Costa plays in supporting the economic recovery of the country, but today I want to say a huge thank you to all of our team members that are affected by this announcement and we will be supporting you throughout this process.”
It is another hammerblow for the UK economy which has seen unemployment rise sharply since the coronavirus pandemic began.
Pizza Express, Yo Sushi and a string of recognised High Street names have all cut jobs and closed restaurants in recent weeks.
Costa Coffee did not say whether shops would be closed.
Costa employs 16,000 people.