Tim Hortons confirmed Tuesday that it is laying off workers, just six weeks after the Canadian doughnut and coffee chain was acquired by Miami-based Burger King Worldwide.
Now part of the newly named Restaurant Brands International, Tim Hortons did not specify how many people were laid off.
“We have had to make some difficult but necessary decisions today as we reorganize our company to position ourselves for the significant growth and opportunities ahead of us,” Alexandra Cygal, vice president of corporate affairs for Tim Hortons, said in a statement sent to media. “The comprehensive process has created tremendous opportunities for some of our employees and new roles and promotions.”
“We are confident the new organization will be faster, more efficient and better positioned for continued success,” she added.
Restaurant Brands International is based in Oakville, Ontario, where Tim Hortons Inc. was headquartered.
Reports from Canadian have indicated that layoffs were forthcoming. There were some reports that layoffs took place earlier today.
Layoffs had been widely expected since the merger took place. The Brazilian private-equity firm 3G Capital, which owned Burger King and controls the combined company, engineered the deal last year, ultimately agreeing to pay $11.4 billion for Tim Hortons.
But 3G Capital is known for its ruthless control over costs, with a record of staff cuts at acquisitions such as Heinz and at Burger King. Under 3G, Burger King also cut out its corporate aircraft and eliminated many executive perks.
“We greatly appreciate the service and contributions of all of our employees and are treating departing employees with the utmost respect, while providing generous and enhanced severance packages, continuing health benefits and outplacement services,” Cygal said.
Combined, Tim Hortons and Burger King have systemwide sales of $23 billion and more than 18,000 locations around the world, making Restaurant Brands International the third largest restaurant company in the world.
Contact Jonathan Maze at [email protected]
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