Bloomin’ Brands stock falls amid workforce cuts

Published 20/02/2025, 14:24
© Reuters.

Investing.com -- Shares of Bloomin’ Brands (NASDAQ:BLMN) dipped 1% after the company disclosed a workforce reduction at its Restaurant Support Center in Tampa, Florida. The cut, announced on February 20, 2025, will affect approximately 100 employees across various operational units, which is about 17% of the Restaurant Support Center team members.

The reduction is part of a broader restructuring plan aimed at aligning the company’s cost structure with the current scale of its operations. This follows the strategic re-franchising of its Brazil operations in December 2024, and comes amid ongoing challenging industry trends. Bloomin’ Brands expects the move to result in annualized cost savings of about $22 million, with estimated pre-tax charges of $7.5 million for severance and related costs, primarily to be incurred in the first quarter of fiscal 2025.

In conjunction with the workforce reduction, Bloomin’ Brands has also announced changes to its Executive Leadership Team. Lissette Gonzalez has been appointed as Executive Vice President and Chief Commercial Officer, and Kelia Bazile has been promoted to President of Carrabba’s Italian Grill. These executive shifts follow Patrick Hafner’s appointment as Executive Vice President and President of Outback Steakhouse in January 2025.

The company is set to release its fiscal fourth-quarter results on Wednesday, February 26, 2025, with a conference call to review the financial outcomes scheduled later that day. The call will be webcast live from the company’s website, with a replay available following the event.

Investors are closely monitoring these developments as the company navigates through the restructuring process, looking to bolster operational efficiency and drive sustainable growth in traffic, comparable sales, and profitability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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