UK pub company Stonegate Group is set to reduce its workforce as part of a restructuring strategy following increased financial pressures.
According to The Telegraph, the company, which operates 4,000 establishments across the country, including the Craft Union and Slug & Lettuce brands, has been collaborating with AlixPartners to streamline operations.
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While the exact number of job cuts has not been finalised, it is anticipated that up to 150 positions will be eliminated from its head office and central functions.
The restructuring will not affect jobs in the pubs and bars, nor lead to any pub closures.
The move follows a challenging period for the TDR Capital-owned company.
Stonegate has been grappling with significant losses and a substantial debt burden nearing £3bn (around $4bn).
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By GlobalDataThe additional financial strain from increased taxes on UK employers in 2025 has compounded the difficulties.
Despite revenue growth, Stonegate announced pre-tax losses of £257m in 2023 and £214m in 2024 respectively, due to hefty interest payments on its debts.
A spokesperson explained that the job cuts are partially driven by a strategic shift from managed pubs to leased and tenanted ones, which have been more profitable recently.
Managed pubs need more oversight and resources, making them less attractive for the company’s current goal of returning to profitability.
The hospitality sector has been hit with extra costs after UK Chancellor Rachel Reeves raised employers’ National Insurance contributions and lowered the payment threshold, which has particularly impacted firms with many lower-paid and part-time workers.
This will be Stonegate’s second round of job cuts in two years, after making 250 redundancies in 2023.
The company is also reassessing rents and supplier agreements as part of its restructuring strategy.
TDR Capital previously injected £250m into Stonegate to prevent a debt default, which included refinancing that increased the cost of servicing borrowings from £301m to £450m in 2024.
This refinancing allowed Stonegate to extend the repayment deadline for much of its debt to 2029 and invest more in its pubs, with AlbaCore Capital Group acquiring a stake in the process.
In early 2025, the pub company announced the reopening of the Spotted Dog in Dorking, following a refurbishment investment.
