McDonalds Plans Reorganization, Job Cuts

McDonald’s CEO of the company is planning job cuts, reorganization and restructuring as it refocuses its priorities to increase restaurant expansion. Chris Kempczinski Messaged employees Friday.

The Fast-food giant McDonald’s said that the job cuts are not intended to reduce costs but instead help the company innovate faster, and work more efficiently. As According to a memo sent to all employees, part of the restructuring will see the company deprioritizing certain initiatives and stopping them altogether. Kempczinski. It’s It is unclear what these projects are.

“Today, we’re divided into silos with a center, segments, and markets,” Kempczinski wrote. “This approach is outdated and self-limiting – we are trying to solve the same problems multiple times, aren’t always sharing ideas and can be slow to innovate.”

CurrentlyMcDonald’s can be divided into three segments: U.S. operated markets, international developed licensed markets, and international markets. The Company is present in 119 markets around the world.

AdditionallyMcDonald’s said Friday It will accelerate its development plans for new restaurants.

“We must accelerate the pace of our restaurant openings to fully capture the increased demand we’ve driven over the past few years,” Kempczinski The memo stated this.

McDonald’s has not released a forecast for the number of new restaurants it will build by 2023. But, McDonald’s stated that they did. November New units would contribute around 1.5% to systemwide sales growth in the year 2022.

The The company is still deciding how many restaurants it will open and how many jobs it will eliminate as part of the reorganization. Kempczinski According to the company, the company will make and start to communicate its decisions about the layoffs. April 3.

Kempczinski A few internal promotions were also announced, which are now effective Feb. 1, to support the company’s new strategy. Global Chief Marketing Officer Morgan Flatley New ventures will be overseen by him. Skye Anderson Will move from McDonald’s U.S. West Zone to global business services. Andrew Gregory’s Global franchising officer role will also include leading global developments Spero Droulias The role of senior vice president of finance will be replaced by chief transformation officer.

Shares McDonald’s closed more than 2% of its stores Friday. The The company is expected report its fourth quarter earnings on Jan. 31.