Compass points to job cuts as Europe economic slowdown bites
Summary
[BENGALURU] Compass Group on Tuesday warned that hundreds of jobs could be in jeopardy as a part of a programme to stem costs, as the weakening economic outlook in Europe dented the catering companys volumes and margins. Compass said deteriorating consumer and business confidence in Europe had hurt volumes and margins at its company catering services, sending shares almost 8 per cent lower. The worlds biggest catering firm could cut jobs in Britain, France and Germany, with roles in Japan and Brazil also at risk, Chief Executive Officer Dominic Blakemore told Reuters. Catering for business and industry brings in 39 per cent of revenue with Compass counting Google, Boeing, Microsoft and Chevron among its clients. "These are an unusually eventful set of numbers for Compass," said Nicholas Hyett, Equity Analyst at Hargreaves Lansdown, adding that the cost of getting the company in better shape was unexpectedly high.