Greene King is considering further job cuts as Britain’s second-largest pub chain struggles with rising taxes, higher operating costs and increasing pressure on consumer spending.
The 227-year-old company, which operates around 2,600 pubs across the UK, is understood to be reviewing its headquarters and core functions, with up to 100 jobs potentially affected. No final decision has been made yet.
The move would be the second major restructuring in less than two years. In 2023, Greene King significantly reduced the number of head office and field employees, saying the overhaul was necessary to help the company “thrive in difficult times.”
Founded in 1799 by Benjamin Greene in Bury St Edmunds, the company is one of Britain’s oldest brewing and pub groups and is known for brands such as Greene King IPA, Old Speckled Hen and Abbot Ale. It operates a mix of managed pubs, which it operates directly, as well as leased and leased sites.
Like much of the hospitality industry, Greene King has faced steep increases in costs. Energy costs, food and beverage ingredients and wages have increased significantly in recent years.
Industry leaders have been particularly vocal about changes to employer National Insurance Contributions (NICs), including lowering the threshold at which they are paid, a move that will have a disproportionate impact on sectors that rely on part-time and lower-paid staff.
Many pubs are also expecting higher business rates from April. Although the government has put together a support package, activists argue it may not be enough to offset the burden.
At the same time, alcohol consumption in the UK has fallen as households face tighter budgets and changing health trends.
In December, Greene King chief executive Nick Mackenzie warned of “constant cost layering” and called on ministers to continue supporting the sector.
Despite a 3.2 per cent increase in sales to £2.45 billion in 2024, Greene King reported a pre-tax loss of £147.1 million in its most recent accounts. Adjusted operating profit was £198m. The company employed around 1,000 people at its headquarters during the year.
Greene King was taken private in 2019 in a £2.7 billion deal by Hong Kong-based CK Asset Holdings, owned by billionaire Li Ka-shing.
The group has continued to invest in its estate, including plans to move its historic Bury St Edmunds brewery to a new £40 million site by 2027, where it will produce both traditional cask ales and newer beer ranges.
Greene King isn’t alone in cutting costs. Rival Stonegate Group, Britain’s largest pub operator and owner of the Slug & Lettuce chain, has also hired consultants to restructure its operations. 95 jobs have already been cut and further cuts are currently being examined.
Stonegate, owned by private equity firm TDR Capital, is reportedly considering selling a package of up to 1,000 pubs to reduce debt and has been linked to a potential valuation of £1bn.
For Greene King and his colleagues, the challenge is clear: balancing investment in heritage brands and property upgrades with the harsh reality of rising costs and weak consumer demand in British pubs.
