Darden Restaurants Inc. has eliminated 30 positions at its Orlando, Fla., headquarters, the company said Monday, as the casual-dining operator reorganizes and cuts costs under new management and a new board.
The 30 layoffs come after Darden let go of 60 workers in November 2014 and left vacant 25 open positions in the first round of an effort expected to cut millions in general and administrative expenses.
Darden is eliminating the 30 positions as part of an effort to “flatten” the company’s organizational structure, company spokesman Rich Jeffers said. The positions being eliminated will be at various levels, he said.
In addition, Darden is decentralizing its support structure as part of an effort to streamline operations, he said.
Support functions like employee and guest relations and talent acquisition will shift from Darden to the brands it operates, including Olive Garden, LongHorn Steakhouse, Yard House, Eddie V’s Prime Seafood, The Capital Grille, Seasons 52 and Bahama Breeze. The layoffs are not from those support functions, Jeffers noted.
Darden has been working for months to streamline its operations and cut general and administrative spending after activist investor Starboard Value LP won all 12 seats to the company’s board of directors.
The company’s efforts appear to be gaining approval. Fitch Ratings said Monday that it affirmed Darden’s debt ratings and gave the company a positive outlook. The outlook, Fitch said, reflects the company’s declining leverage, improving cash flow and a belief that Darden’s turnaround efforts are “gaining traction.”
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This story has been revised to reflect the following correction:
Correction: May 20, 2015: An earlier version of this story did not properly identify Eddie V’s Prime Seafood.
