Greene King is weighing a new round of job cuts as Britain’s second-largest book chain faces rising taxes, higher operating costs and growing pressure on consumer spending.
The 227-year-old company, which operates around 2,600 pubs across the UK, is understood to be reviewing its head office and middle-of-the-road operations, with up to 100 roles potentially affected. No final decision has been taken.
The move will mark the second major rebuild in less than two years. In 2023, Greene King cut a significant number of head office and field staff, saying the restructuring was necessary to help the business “thrive in difficult times”.
Founded in 1799 by Benjamin Greene in Bury St Edmunds, the company is one of Britain’s oldest groups of breweries and pubs, known for products including Greene King IPA, Old Speckled Hen and Abbot Ale. It operates a combination of owned, directly operated pubs, alongside leased and leased premises.
Like most of the tourism industry, Greene King has faced a sharp rise in costs. Energy bills, food and drink ingredients and wages have all risen sharply in recent years.
Industry leaders have been vocal about changes to employers’ national insurances (NICs), including a reduction in the amount they are paid, a move that disproportionately affects sectors that rely on casual and low-wage workers.
Many pubs are also fighting for higher rates of business from April. While the government has launched a support package, campaigners say it may not be enough to cover the burden.
At the same time, alcohol consumption in Britain has softened as families face tighter budgets and changing health conditions.
In December, Greene King chief executive Nick Mackenzie warned of “constant costing” and urged ministers to continue supporting the sector.
Despite a 3.2 per cent rise in sales to £2.45bn by 2024, Greene King reported a pre-tax loss of £147.1m in its latest accounts. Adjusted operating profits stood at £198m. The company hired about 1,000 head office workers during the year.
Greene King was taken private in 2019 in a £2.7bn deal by Hong Kong’s CK Asset Holdings, run by billionaire Li Ka-shing.
The group has continued to invest in its premises, including plans to move its iconic Bury St Edmunds brewery to a new £40m facility in 2027, where it will produce both traditional cask ales and new types of beer.
Greene King is not alone in cutting costs. Rival Stonegate Group, Britain’s biggest pub operator and owner of the Slug & Lettuce chain, has also appointed advisers to restructure its operations. It has already cut 95 roles, with more being cut under review.
Stonegate, owned by private equity firm TDR Capital, is reportedly considering selling a pack of up to 1,000 pubs to reduce debt and has been linked with a potential £1bn valuation.
For Greene King and his peers, the challenge is clear: to balance investment in premium brands and site development with the harsh reality of rising costs and weak consumer demand for British pubs.
