MILFORD - Subway is laying off 300 employees at their World Headquarters in Milford.
The cuts are substantial to the Connecticut homegrown company that opened its first store in Bridgeport in 1965. The layoffs are about 30% of the company's workforce. A cut having a significant impact on the community.
"It is a family and they are part of the Milford family," said Mayor Ben Blake.
Mayor Blake reacted to the news announced by the Subway World Headquarters. The global brand has become a source of pride in Milford.
"It was a range of employees. Some executives on the way down to minimum-wage workers," said Mayor Blake.
Alan Marcus, Sr. Director of Public Relations at Subway said In a statement,“A reduction in workforce is never an easy decision but streamlining and simplifying our business with a smaller and nimbler workforce will help us react quickly to the changing needs of the business.”
Some of those changing needs could be evolving with competing convenience. Dr. Fred McKinney says delivery apps have played a significant role in the restaurant marketplace.
"You can go to Subway or you can call your favorite high-end restaurant and they will bring you what you want," said Dr. McKinney of Quinnipiac University's School of Business.
Dr. McKinney also points to Subway’s new CEO John Chidsey’s strategic plan. Chidsey took the reins in November taking over for the family of the late founder of Subway Fred Deluca.
"It’s probably better that if you have a strategic vision that you make those changes as quickly as possible," said Dr. McKinney.
The changes are not necessarily a bad thing according to Dr. McKinney. He says it’s too early to panic for the largest sandwich chain in the world.
"Sometimes you have to take one step back before you can take two steps forward," said Dr. McKinney. "I think that the future still could be very bright for Subway."
Dr. McKinney says this is not another example of local Connecticut businesses cutting jobs. He says Subway is more affected by the global economy.
Mayor Blake says the city is working with Subway to help place laid-off employees with a new job.