Subway Struggling Due To COVID-19, Is Laying Off Employees

Despite being one of America's largest sandwich chains, Subway has been struggling financially as a result of the COVID-19 pandemic. As a result, they have laid off some of their employees and even closed some of their restaurants permanently, according to Today.

Even though the restaurant chain began to implement new changes and strategies to keep their restaurants afloat, they still experienced a major drop in sales. Beginning in mid-March they laid off 150 employees, the majority of whom worked in the sandwich chain's corporate offices.

The company was already in a vulnerable state prior to the pandemic, as they had been going through a rebranding process which included laying off 300 employees. The pandemic could not have happened at a worse time for the sandwich chain.

Alan Marcus, Subway's senior director of public relation, explained why the COVID-19 crisis hit the company so hard.

"The Covid-19 pandemic has forced us to accelerate a restructuring plan for which we had been preparing. A reduction in workforce is never an easy decision, especially during these unprecedented times," he explained.

While March was only the very beginning of the pandemic in the U.S., it soon became clear that drastic changes would need to be made to keep the company afloat. It is for this reason that the restaurant chain acted so quickly in laying off employees. Even though the company is at a low point now, they remain positive about the future and are confident that they will be able to get back on their feet again, Marcus emphasized.

"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."
In the past two years, Subway has closed around 2,000 of their restaurants. However, they still have around 24,000 operating restaurants all across the U.S.

In an effort to do their part to prevent the spread of COVID-19, Subway employees will be required to wear face masks. In addition, social distancing will be practiced within the stores and curbside pickup will be offered when possible.

As The Inquisitr previously reported, Subway is not the only chain restaurant to be implementing changes as a result of COVID-19. McDonald's was given a lengthy, detailed report regarding safety precautions they are required to practice in order to begin re-opening their dining rooms.