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Portillo's Laying Off 18% of Staff at Oak Brook Headquarters
The layoffs are part of a strategic reset as Portillo's cites lower sales and about $1.1 million in restructuring charges.
On July 31, hot dog chain Portillo's laid off 18% of its Oak Brook corporate and field management staff as part of a "strategic reset" amid challenging sales conditions.
Sluggish sales and rising food costs drove the restructuring, as same-store sales fell 1.2% in the second quarter and net income declined $2.9 million to $7.2 million.
The layoffs, costing approximately $1.1 million in restructuring charges, spared all roughly 8,000 restaurant-level workers, allowing operations to continue uninterrupted across the chain's 109 locations.
CEO Brett Patterson projects the restructuring and supply chain efficiencies will generate $10 million to $15 million in annualized savings, while the company recently named former Darden executive Kevin Kalicak as CFO.
Despite scaling back broader national expansion earlier this year, Portillo's continues planning a Wrigleyville location next year and another site on Michigan Avenue in downtown Chicago.