Employees at coffee chain Java have been given two weeks to resign.
The outlet has embarked on a mass layoff of its employees through a voluntary exit program.
In a memo sent to employees, the new order comes after the restaurant witnessed decreased demand as a result of Covid-19 regulations.
Java indicated that it had been struggling with reduced traffic at its outlets and closure of others due to the restrictions put in place to curb the spread of the virus.
“From the beginning of the Covid-19 crisis, even as restrictions were eased and food and beverage businesses such as ours begun to reopen their doors, demand has been materially lower than previous years levels and this will continue for a period of time," the memo reads in part.
The company added that it has explored different aspects of cutting costs like re-negotiating rents, procurement of raw material, labor schedules, utility costs.
However, sales have remained low making the business unsustainable.
The company said it will initialize the staff rationalization exercise through a voluntary separation option program that will provide an incentivized option to workers willing to resign.
“Unfortunately the business is potentially over resourced at the current level of performance. Hence Java has had to make a difficult decision to offer the Program to provide our staff the opportunity to receive a lump sum financial payment from the company allowing them to create options for themselves following the prolonged effects of C-19,” the memo added.
According to Java, the voluntary resignation option will be available to branch employees who have completed four years of service, commissary staff who have completed three years, and support and operations staff who have been with the firm for more than one a half years.
Employees who chose to resign have been given until November 27.
