Red Lobster is laying off less than 200 restaurant-level employees in an effort to streamline operations and set it up for long-term growth.
The “targeted” cuts represent less than 1% of its workforce, the company said in a statement to Restaurant Business.
“Red Lobster remains committed to making thoughtful, strategic decisions that position our company for long-term success and stability,” the company said. “These changes were made carefully to minimize disruption and reflect our focus on building a stronger, more agile business.”
Many of the workers let go were managers, according to multiple former employees contacted by Restaurant Business.
The 500-unit chain is continuing its emergence from a Chapter 11 bankruptcy filing in May 2024. It has a new owner, Fortress Investment Group, and a new executive team led by CEO Damola Adamolekun.
The chain has worked to generate traffic through a series of marketing and menu efforts, including popular new seafood boils, happy hour and a recent SpendLESS Shrimp promotion—a play on the infamous Endless Shrimp deal that contributed to its previous financial issues.
Red Lobster has also been embracing technology. It invested in new online ordering software and added an AI voice system to take orders over the phone.
The Orlando-based chain closed more than 100 restaurants amid its bankruptcy proceedings in 2024, which followed years of sales and profit declines. It’s still the largest seafood chain in the U.S., with systemwide sales of $1.7 billion in 2024, according to Technomic data.
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