Intercontinental Hotels and Mike Ashley’s Frasers Group are expected to be the latest firms to warn of job losses as Britain teeters from the effects of coronavirus
- The UK has lost more than 134,000 jobs since March
- The pandemic is also hitting restaurants, with some 22,000 jobs in the sector this year
Holiday Inn owner Intercontinental Hotels Group (IHG) and Mike Ashley’s Frasers Group are expected to be the latest companies to warn of job cuts this week as Britain shudders from the effects of the coronavirus.
The companies will report financial results after months of being battered by lockdown restrictions. Both have warned of possible layoffs.
The UK has lost more than 134,000 jobs since March, including thousands cut in the last week.
Warning: On Thursday, Mike Ashley’s Frasers Group will report results for the year through April
LGH Hotels Management was one of the companies to warn of layoffs, with the company revealing on Wednesday that 1,500 positions were at risk.
Hotels were among the hardest hit companies during the crisis. The UKHospitality industry group has warned that up to 20 percent of jobs at the larger chains are at risk. Hilton plans to cut 2,100 jobs worldwide, while Premier Inn owner Whitbread will cut 250 jobs from its headquarters.
According to The Sunday Times, more than 1,000 jobs are also at the Edwardian Hotels group, which owns the May Fair in London.
IHG is said to have told staff at five Scottish hotels that at least 137 jobs are at risk. It also manages hotels in England and Wales. IHG, which has seen stock fall 25 percent in 2020, will announce its half-year results tomorrow. A spokesman said: ‘We have done everything we can to preserve jobs. We consult with our colleagues about plans to change the format. This will likely entail some layoffs. ‘
On Thursday, Mike Ashley’s Frasers Group will also report results for the year to April.
It owns sportswear retailer Sports Direct and department store chain House of Fraser.
Frasers Group warned last month that more of its high street stores were at risk.
The results announced Thursday only cover the initial impact of the pandemic.
Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown, said, “Frasers Group has been very quiet. With the results, we will for the first time get an idea of what store closings have meant for the group’s financial statements. ‘
The pandemic is also hitting restaurants, the Center for Cities warns today. About 22,000 jobs in the sector have been cut this year, and experts fear further losses. Center Professor Joshua Bamfield said many restaurants were on ‘their knees’.