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Domino’s Pizza to cut 200 jobs globally as profits plunge
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Read Time:2 Minute, 37 Second

Domino’s Pizza is getting rid of 200 jobs in Australia and internationally as its profits plummet.

The company made rapid changes, including new fees, to keep up with inflation last financial year, but an annual profit report found not everyone was happy. Now, some of those new surcharges have been abandoned in favour of a global restructure.

Those job losses will affect 20 per cent of the 12 global markets across Europe, Asia and New Zealand.

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“These changes include simplified reporting lines,” group CEO and managing director Don Meij said on Wednesday.

“Sadly, these changes mean that we expect a number of staff in our support offices in Australia and internationally to leave our business in the coming months.”

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It comes after recent inflation caused higher labour, ingredient and energy costs, and some price increases — such as a delivery service fee in Australia and New Zealand — were passed on to customers and have since been removed.

“The scale and pace of these increases meant Domino’s leadership needed to adjust our pricing and cost base faster than in our history,” Meij said.

“Because of the speed at which we needed to respond to inflation, we didn’t always get the ‘value equation’ right.

“We have heard this feedback loud and clear and have now removed the majority of these fees.”

Not all the new fees and changes have been removed, some price increases accepted by the public, such as on the chain’s value range, will remain in place.

Domino’s Pizza is cutting 200 jobs in Australia and globally as the company restructures following plummeting profits. Credit: Getty Images

The company’s net profit fell 25.7 per cent to $122.6 million in the 2023 financial year.

However, overall sales actually grew 2.2 per cent to $4.0 billion — but this was relative to an additional 395 stores opening worldwide, with same-store sales sliding 0.2 per cent.

“While we did not always get our pricing right, our decisive action ensured the sustainability of more than 1000 small business owners whose livelihoods rely on the Domino’s brand,” Meij said.

Domino’s confirmed that underperforming stores would now be closed.

A June announcement also confirmed that an additional 65 to 70 corporate stores globally would close, and that Domino’s would shutter all 27 stores in Denmark, in an exit from the Scandinavian kingdom.

It anticipates these decisions will save the company $50-60 million in the next financial year.

These closures were more than offset by the purchase of 287 stores in Malaysia, Singapore and Cambodia as Domino’s heads towards its goal of 7100 stores in the next decade.

– With AAP

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