Papa John’s, one of America’s largest pizza chains, is planning to close hundreds of locations and lay off a portion of its corporate workforce as the company aims to cut costs and improve restaurant profitability, according to reports.

During a Thursday earnings call, company executives said that approximately 300 underperforming locations will close by the end of 2027, with 200 closing by the end of this year, according to reports by National Restaurant News and CNN Business.

The company did not provide a specific list of locations identified for closure. The chain had about 3,500 locations at the end of 2025, with more than 300 in Florida.

Papa John’s Chief Financial Officer Ravi Thanawala said the stores identified for closure are primarily franchise-owned and are not meeting brand expectations or lack a clear path to sustainable financial improvement.

In addition to the closures, the company said it plans to lay off 7 percent of its 700-person corporate workforce. Papa John’s global corporate office is located in Atlanta.

The announcement comes after Papa John’s announced a 2 percent decline in North America same-store sales driven by a performance downturn of company-owned stores, according to National Restaurant News.

The company said it also plans to simplify its menu by phasing out the Papadias, a flatbread sandwich introduced in 2020, and Papa Bites, its bite-sized dough balls introduced in 2022. The move comes after the company introduced pan pizza in January, and it is testing out sandwiches and chicken tenders in some markets.

“We know we have to drive on innovation to recruit new customers,” CEO Todd Penegor said. “We also know we have to compete better at the local level, and we’ve been working hard over the course of the last 18 months.”

Earlier this month, rival chain Pizza Hut also announced it plans to close 250 underperforming locations across the country in the first half of this year. The announcement came from Pizza Hut’s parent company, Yum! Brands, in an earnings call on Feb. 4.

Yum! did not announce which specific Pizza Hut locations will be closing.