Subway announced that it will be laying off 300 people from its headquarters in Milford, Connecticut. Despite decades of growth, the company began reducing the number of stores it operated across the country as it faced competition from other companies in recent years.
In a statement, Alan Marcus, Subway’s Director of Public Relations said: “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.”
Marcus reaffirmed Subway’s commitment to supporting its franchise owners in achieving success.
“Every Subway restaurant is locally owned and operated. We must do what we can to fully support our owners and our guests in every neighborhood in which we do business. In order to deliver on that strategy, a difficult decision was made to eliminate approximately 300 positions at our Global HQ in Milford, Connecticut.”
Subway first opened in Bridgeport, Connecticut in 1974 and eventually began franchising locations. There are currently more than 40,000 locations worldwide. It is the largest fast food company in the world and is privately held.
The company has faced some scrutiny and scandal over the years. A 2019 New York Times article reported some franchisees felt forced to open more locations to compete. In 2018, the company closed more than 1,000 locations. The company also faced issues after its spokesman Jared Fogle faced child pornography and sex assault charges.
Despite the HQ layoffs, the restaurant chain plans to pay for 25 percent of remodeling costs for 10,500 franchise locations by the end of 2020. The goal is to improve the restaurant experience for customers.
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About the Author: Aisha K. Staggers is a writer, lecturer, political analyst and literary agent. She appears weekly for “Staggers’ State of Things” on the Dr. Vibe Show. Her work has been published by Paper Magazine, AfroPunk, The Spool, GREY Journal, MTV News, HuffPost, Blavity, Atlanta Blackstar, For Harriet, New York Review of Books and a host of other first-run publications and syndicated outlets. Find her on Twitter @AishaStaggers. For more of her work, check out her page here!