Less than a week after announcing it was laying off about 69 employees at its Denver-based headquarters, Quiznos is now expected to cut even deeper.
The Denver Post is reporting that nearly 140 jobs will be eliminated at the company.
The pink slips will affect a big chunk of Quiznos’ midlevel managers throughout the country and are being attributed to a slow economy.
The new management team, in the middle of a fundamental restructuring effort, is hoping the move reduces corporate expenses and improves franchisee profits.
The company is offering partial royalty rebates as part of this restructuring. Franchisees now pay 1 percent of their store’s weekly gross revenues. Previously, they paid 7 percent. Their 4 percent advertising fee remains in place.
The company released the following statement:
"Quiznos is committed to franchise owner success. This commitment requires that we operate as efficiently as possible at every level. Continued pressure brought by a slow economy has led the company to make the difficult decision to reduce corporate expense in order to provide additional financial assistance to the franchise owners."
