St. Louis-based Panera Brands is reportedly planning an Initial Public Offering (IPO) for 2024 and has announced a significant reduction in its workforce. The company, which operates Panera Bread (NASDAQ:PNRA), Caribou Coffee, and Einstein Bros. Bagels, plans to cut 17% of its corporate staff, predominantly impacting support roles. This decision results in approximately 300 job losses from an original count of 1,800.
The conglomerate was established by JAB Holdings in 2021 and was taken private by the same entity in 2017 after previously being public. The decision to go public again follows recent IPOs by other companies, including Cava Group, whose shares dropped 27% after an almost 100% initial pop in June.
The workforce reduction comes five months after the announcement of the company's IPO plans and a reshuffling of leadership roles. Jose Alberto Duenas from Einstein Bros. Bagels has stepped in as the new CEO while Niren Chaudhary has taken up the chairman's role.
As part of their strategy to implement a "simplified model" and enhance customer experience, Panera is streamlining its operations. A company spokesperson stated that this decision was made after careful deliberation and committed to treating all affected employees with due respect during this transition phase.
In addition to these changes, Panera Brands also faces a lawsuit over its "Charged Lemonade", alleged to have contributed to a college student's death. This case is not directly related to the planned IPO or workforce reduction but adds to the challenges faced by the company at this time.
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