According to The Wall Street Journal, in April the Fast-food chains in California are laying off workers to prepare for the state's $20 minimum wage.
This includes pizza chains, which are cutting back on delivery drivers in response to the new $20 minimum wage.
Pizza Hut plans to lay off approximately 1,200 workers.
As a report, two Pizza Hut franchisees operating across various counties in California have announced plans to lay off approximately 1,200 workers.
These cutbacks primarily target delivery-driver positions, as the franchises opt to transition to third-party delivery services.
Layoff details:
Southern California Pizza Company: Planned to lay off nearly 850 workers in February, according to filings with the state.
PacPizza (Pizza Hut Franchisee): Filed plans to lay off over 350 workers in February.
Excalibur Pizza LLC (Round Table Pizza Franchisee): Scheduled to lay off 70 workers in April, transitioning to third-party delivery.
Round Table Pizza's Response: The company claims the layoffs are a "transfer of jobs" as more workers will be needed by third-party delivery services. However, they acknowledge potential increases in delivery fees and menu prices for customers.
This situation highlights the potential consequences of rising labor costs for businesses.
While some workers may find employment with third-party delivery services, the overall impact on the workforce and consumer prices remains to be seen.
The layoff incident is not only a concern for the workers but also reflects the current real-life situation of the business.
The layoff of many workers has sparked debate on social media.
Esther Crawford, Twitter's director of product management, went viral after posting a photo of herself sleeping at the company after 84 hours of work.
However, Crawford's dedication to her job came under criticism on social media after she supported Elon Musk's "horrible" work regime.
Not only did she encourage people to sleep over at the company, but she also advised other workers that difficult jobs require sacrifices such as time and energy.
However, Crawford's dedication did not prevent her from ending up on Elon Musk's firing list.
On the evening of February 26, Esther Crawford was officially laid off, leaving many people shocked.
On social media, many mocked her, suggesting that she was overly confident in her abilities, while others criticized Musk and advised her to seek a job suitable for her experience
