Tim Hortons to cut jobs after takeover by Burger King
TORONTO (Reuters) - Canadian coffee and doughnut chain Tim Hortons confirmed on Tuesday it will cut jobs as it reorganizes after being acquired by U.S. fast food chain Burger King for C$12.64 billion ($10.20 billion) last year.
Tim Hortons declined to provide exact figures on the number of employees to be affected, saying it is still in the process of reorganizing. The Financial Post reported last week that a "significant" number of the roughly 1,400 employees at its head office in Oakville, Ontario, and in regional offices would be let go.
"We have had to make some difficult but necessary decisions today as we reorganize our company to position ourselves for the significant growth and opportunities ahead of us," said company spokeswoman Alexandra Cygal.
Burger King announced its takeover of the Canadian chain in August in a deal that created the world's third-largest fast-food restaurant group. The two fast food chains are now a combined company, Restaurant Brands International Inc (QSR.TO: Quote), majority owned by a New York-based Brazilian investment firm, 3G Capital.
Some employees will take on new roles, Cygal said, but those leaving the company will be given enhanced severance packages and continuing health benefits.
As part of undertakings made to the government of Canada to get the takeover approved, Burger King vowed to maintain 100 percent of existing employment levels at Tim Hortons' stores across Canada, but it provided no assurances that it would keep the more than 1,000 employees at Tim Hortons' head office.
Burger King said instead it would establish the head office of the new combined company in Oakville and maintain significant employment levels there.
(Reporting by Solarina Ho; Editing by Peter Galloway)
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