Chickfila to close all its locations and lay off all of its employees
Chick-fil-A will be closing all its restaurants in California and will lay off its entire workforce by the end of the year, according to a letter the chain sent to employees on Friday.
The company’s letter is the latest sign of mounting uncertainty about the company’s business prospects, after the company announced last week that it was laying off all its staff.
The letter also outlines the changes it plans to make to its workforce, including cutting the number of restaurants in the state by 90 percent.
The decision comes amid a long-term slump in the chain’s business.
On Wednesday, the company reported disappointing sales growth of just 2.3 percent in the first quarter, and analysts say it will have to trim its workforce by about 1,000 workers to close the gap.
The chain will also be closing a handful of locations in the Northeast, South and Midwest, and is looking to shutter its flagship stores in New York, Los Angeles and Chicago.
“We have made difficult decisions to focus on our core businesses,” said Dan Cathy, the CEO of Chick-Fil-A.
“This year, we have eliminated 1,200 jobs in the U.S. and are reducing our workforce by more than 1,500 across the country.”
Cathy said the company was closing its California locations and will “focus on our largest markets to better serve our customers.”
He did not specify how many jobs would be cut.
“Our goal is to bring our workforce down to the number we needed to be able to meet the needs of our customers,” Cathy said in the letter.
The CEO also announced plans to shutter Chick-in-The-Box and the restaurant chain’s franchisee operations in Texas, Arizona and North Carolina.
“With Chick-In-The Box and the other franchisees we are currently considering, we are looking at other business options to meet our future growth needs,” Cathy wrote.
“But the reality is we have to make hard decisions that will allow us to continue to serve our loyal customers.”