Panera Bread is laying off some support center employees

It is the second support center restructuring in the past year and a half. | Photo: Shutterstock.

Panera Bread said Tuesday it would lay off an unspecified number of workers at the bakery-café chain's support centers in St. Louis and Newton, Massachusetts.

Panera CEO José Dueñas sent a memo to the fast-casual chain's support center and management describing the layoffs as part of the next step in an ongoing strategic transformation, according to sources familiar with the move . Restaurant Business obtained a copy of the memo.

Dueñas said in the memo that the company's support centers would be redesigned, including reducing and reassigning some roles to streamline operations. He did not say how many positions might be affected, but that included employees in both the St. Louis and Newton offices.

“As we evolve and grow, our ways of working must also evolve,” Dueñas wrote. “We need to be simpler, more flexible and faster than ever before, work more efficiently and empower our teams to win. We need to change the way we work to eliminate silos and simplify executive reporting lines to make faster decisions and drive more consistent execution.

“And finally, we must ensure that our corporate teams are closer to our cafes and well-positioned to support and empower our business leaders, who are at the heart of our culture,” the memo said.

Those affected by the cuts should be notified directly on Tuesday and will receive a comprehensive package that includes severance pay, health support and other benefits. The cuts had no impact on employees in the cafes or franchises.

Panera has been working on one Restructuring plan dating back to May 2023 when the leadership team was overhauled in what was described at the time as preparation for an IPO – although the IPO has not yet taken place. The bakery-café chain was acquired by European investment firm JAB Holding Co. in 2017. JAB joined Panera with Einstein Bagels and Caribou Coffee under the Panera Brands umbrella.

In November 2023, layoffs occurred at corporate headquarters as Panera cut approximately 17% of its corporate workforce, or 300 positions.

Earlier this year Panera conducted a major menu overhaul Designed to streamline and simplify cafe operations. The new menu, which continues to take shape, puts the focus back on the core offering of sandwiches, soups, salads and mac and cheese.

The chain has also tested using third-party bakeries and shipping pre-baked doughinstead of letting bread rise and bake in all units. At least two fresh dough production facilities closed earlier this year. Panera COO Debbie Roberts said those establishments underperformed.

Another dough factory in Atlanta is scheduled to close on November 15, which is expected to result in the layoff of 86 workers there, according to a Worker Adjustment and Retraining Notification (WARN) the company filed last month with the Georgia Department of Labor.

In his memo, Dueñas said the strategic plan aims to prepare the 2,182-unit Panera for long-term growth.

“We have already made significant progress in our transformation strategy by simplifying our operating model and delivering an improved guest experience,” he wrote. “We have seen positive results from our efforts, with a tastier menu, industry-leading retention rates in our cafes and faster, more accurate guest service – resulting in some of the highest guest satisfaction scores in our history.”

Panera declined to comment on the memo or offer further details.

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