McDonald’s plans corporate job cuts and restructuring
Image credit: Zee Business
In a significant reorganisation that would also hasten plans for new outlets, the CEO of McDonald’s has warned employees to expect job cuts.
The fast food behemoth, according to its boss Chris Kempczinski, was harmed by an “outdated and self-limiting” structure.
He said that “we are constantly attempting to address the same problems and aren’t always sharing ideas.”
It announced in a letter distributed to all employees that it will examine corporate workforce levels by April.
McDonald’s employs about 200,000 people in corporate roles and its own restaurants, 75% of which are located outside of the US.
Its CEO also said that a number of initiatives would be completely shelved. “This will help us move faster as an organisation while reducing our global costs and freeing up resources to invest in our growth,” he wrote in a message to the staff that was also sent to investors.
The corporation did not make clear which projects would be impacted or the size of the anticipated job losses.
According to Mr. Kempczinski, as part of the new plan, the business aims to push for the opening of more restaurants “to fully harness the increasing demand we’ve produced over the past several years.”
Despite the fact that the pandemic has impacted eating in general, McDonald’s has benefited from the company’s efforts in home delivery and online ordering.
Because of pricing increases for items like its cheeseburgers, McDonald’s sales increased by 6% in the first nine months of the year.
However, the dollar’s increase in strength and the pullout from Ukraine have hurt its global viability.
In its most recent letter to investors in October, the company mentioned that increasing prices were another problem. It stated that there was “growing uncertainty and concern about the economic environment” at many of its locations, many of which are run by franchisees.
The company, which is located in Chicago, operates in more than 160 countries. It stated this week that it would depart Kazakhstan, which borders Russia, citing issues with the supply chain brought on by the situation in Ukraine.
In May, McDonald’s announced that it would stop operating in Russia after 32 years. The restaurant sector had undergone several years of upheaval before this most recent transformation.