Bloomin’ implementing 17% workforce reduction at Restaurant Support Center

In a regulatory filing, Bloomin’ Brands (BLMN) announced that, following a comprehensive analysis of the appropriate team size and structure, it is implementing a workforce reduction at its Restaurant Support Center in Tampa, Florida. The reduction will impact approximately 100 employees across various operational units that support corporate administration and restaurant operations, or about 17% of the Restaurant Support Center team members, as of February 20. “This action is intended to align the Company’s cost structure with the current size of its business following the strategic re-franchising of its Brazil operations in December 2024, ongoing challenging industry trends, and increased focus on high priority growth opportunities and operational efficiency. The Company believes this will further support its long-term strategy and path to sustainable growth in traffic, comparable sales, and profitability. The Company currently estimates that it will incur charges of approximately $7.5M in aggregate pre-tax costs in connection with the reduction, consisting of one-time severance and other termination benefit costs under its established severance plans. The Company expects that the majority of these charges will be incurred in the first quarter of fiscal 2025. The Company expects that these workforce reductions, coupled with other recent administrative changes, will deliver annualized cost savings of approximately $22M. As part of the restructuring, the Company is also making changes to its Executive Leadership Team to realign with and support the new operating model. Lissette Gonzalez, who has been serving as Executive Vice President, Chief Supply Chain & Operations Excellence Officer since October 2023 and previously served as Senior Vice President, Global Supply Chain Officer, was appointed to serve as Executive Vice President, and Chief Commercial Officer and Kelia Bazile, former Vice President of Operations for Bonefish Grill was promoted to President of Carrabba’s Italian Grill. These changes follow the Company’s promotion of Patrick Hafner to serve as Executive Vice President and President of Outback Steakhouse, effective January 20, 2025. As previously announced, the Company will release results for the fiscal fourth quarter ended December 29, 2024, on Wednesday, February 26,” the filing stated.