LOUISVILLE Ky. Papa John’s International Inc. has cut 35 employees at its corporate headquarters, or about 6 percent of its more than 600 employees based in Louisville.
The parent company to the third-largest pizza delivery chain said this week that the cuts were necessary during the harsh economic times that have led to negative sales throughout the pizza segment during 32 of the 35 weeks completed so far this year. The company also cited increasing labor and commodity costs.
“We are operating in one of the worst economies in decades, and unfortunately the pizza business is not immune from this downturn,” Chris Sternberg, Papa John’s senior vice president of corporate communications and general counsel, said in a statement. “When the economy recovers, and the pizza category again turns positive, we believe Papa John’s will be well-positioned for success.”
For its latest quarter, Papa John’s nearly doubled its net income with the help of a tax benefit. Same-store sales were positive, increasing 0.1 percent. The company raised both its earnings and same-store sales outlook for the remainder of the year.
Contact Sarah E. Lockyer at [email protected].
