Bloomin’ Brands Announces Layoffs in Tampa

News Summary

Bloomin’ Brands, the parent company of popular restaurants like Outback Steakhouse, has announced layoffs affecting about 100 employees at its Tampa support center. This move, accounting for 17% of the workforce, follows a thorough analysis aimed at aligning costs with current operations and will lead to significant financial impacts, including $7.5 million in severance costs and projected annual savings of $22 million. The company will also see changes in executive leadership as it navigates this challenging period.

Big Changes in Tampa: Bloomin’ Brands Announces Layoffs

In a significant move, Bloomin’ Brands, the well-known parent company of popular restaurant chains such as Outback Steakhouse, Carrabba’s, and Bonefish Grill, has announced it will be laying off approximately 100 employees at its Restaurant Support Center located in sunny Tampa, Florida. This decision is part of a broader strategic restructuring aimed at adjusting to the current business landscape.

What Does This Mean for Employees?

The layoffs, which account for about 17% of the workforce at the support center, will impact employees across various operational units that support both corporate administration and restaurant operations. For many, this news might come as a shock, especially given the supportive community that Bloomin’ Brands has fostered over the years.

A Necessary Decision

So, why did the company decide to go through with these layoffs? According to their announcement, this step follows a comprehensive analysis of team size and structure. The aim is to align Bloomin’s cost structure with its current business size, especially after the strategic re-franchising of their Brazilian operations that took place in December 2024. While the restructuring is a tough pill to swallow, it’s driven by ongoing challenges in the industry and a focus on high-priority growth opportunities and boosting operational efficiency.

Financial Impact

This move is expected to have significant financial implications. Bloomin’ Brands anticipates incurring around $7.5 million in severance and termination benefits for those affected. However, in a bid to recover financially, the company projects that this staffing reduction will yield annualized cost savings of approximately $22 million. That’s no small change!

Leadership Changes on the Horizon

In addition to the layoffs, the company will also be seeing some changes in its executive leadership. Lissette Gonzalez has been appointed as the new chief commercial officer, a role which undoubtedly comes with tremendous responsibilities during this transitional phase. Meanwhile, Kelia Bazile has been promoted to the esteemed position of president of Carrabba’s, and Patrick Hafner will take on the role of president of Outback Steakhouse starting January 20. These changes signal a commitment to navigating through these difficult waters proactively and strategically.

Bigger Picture: The State of Bloomin’ Brands

For those not familiar, Bloomin’ Brands operates about 1,450 restaurants across 13 countries and reported a whopping $4.54 billion in revenue over the last 12 months. However, it should be noted that the company has faced some tough times, including a staggering 56% decline in stock value within the past year. Moreover, they have been experiencing increased pressure from activist investors like Starboard Value, who are pushing for significant changes in the company’s leadership and operational strategies.

Looking Ahead

Last year also saw Outback Steakhouse closing down 36 underperforming locations, primarily due to outdated leases, further emphasizing the need for a fresh approach. As Bloomin’ Brands prepares to release its fourth-quarter earnings on February 26, industry watchers will be keen to see how these recent changes play out and what they mean for the future of this beloved dining brand.

Conclusion

Change is never easy, especially when it affects people’s jobs. But as Bloomin’ Brands navigates this restructuring journey, one can only hope they come out stronger and more efficient, ultimately benefiting both their employees and patrons alike. For now, employees and management alike will be holding their breath, waiting for the next chapter in the Bloomin’ Brands story.

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Additional Resources

• Business Observer: Bloomin’ Brands Cutting Corporate Jobs
• Restaurant Business Online: Bloomin’ Brands Lays Off 100 Employees
• St. Pete Catalyst: Bloomin’ Brands to Cut 100 Local Jobs
• Nation’s Restaurant News: Bloomin’ Brands Plans Fast Casual Aussie Grill
• Nation’s Restaurant News: Bloomin’ Brands Reduces Aussie Grill Fast Casual Footprint
• Wikipedia: Bloomin’ Brands