McDonald's Plans Reorganization, CEO Announces Layoffs Coming: What Investors Need to Know
Chicago-based McDonald's Corp MCD has announced it will accelerate its restaurant expansion plan and review company staffing levels as part of its new business strategy .
Currently, the company operates in 119 markets worldwide and is divided into three segments: United States, Internationally Operated Markets, and International Development Licensed Markets.
In a memo to employees and reported by Reuters, McDonald's CEO Chris Kempczinski highlighted plans to develop new restaurants.
"We need to accelerate the pace of our restaurant openings to fully capture the increased demand we have seen over the past several years," Kempczinski said in the memo.
He warned company staff of possible layoffs in the spring as part of a plan to move faster and spur innovation.
Also read: Beyond meat stock, McDonald's is expanding its McPlant offering: what's going on?< /p>
"We will be evaluating roles and staffing levels in parts of the organization, and there will be tough discussions and decisions ahead," Kempczinski wrote in the memo.< /p>
"We will look at our strategy and values to guide how we make these decisions and support everyone involved in the business. We plan to finalize and begin communicating the decisions keys by April 3," he added. .
In an interview with The Wall Street Journal, Kempczinski said he expects McDonald's to save money on the staff review, but that it hasn't yet set a dollar amount to cut or the number of jobs it seeks to cut.
"Some jobs that exist today are either going to be moved or disappear," Kempczinski said during the interview.
He also said McDonald's had learned to operate more efficiently during the pandemic, when it needed to move quickly to respond to new ways of doing business.
Kempczinski added that the company needs to make decisions faster and have fewer siled divisions in the future.
McDonald's employs approximately 200,000 people in the company and its own restaurants.
Talking about opening new restaurants, Kempczinski said the company plans to open new restaurants in Europe, the United States and parts of Asia. McDonald's plans to open a mix of traditional restaurants and new formats, such as those focused on take-out sales only.
As inflation rises, US companies in various sectors have announced job cuts in corporate sectors.
In December 2022, PepsiCo Inc PEP announced that it would cut jobs at the headquarters of its North American snack and beverage divisions.
Ford Motor Co. F also announced plans to cut 3,000 salaried and contract jobs last summer to focus on the electric vehicle business.
Photo: Courtesy of Shutterstock.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Chicago-based McDonald's Corp MCD has announced it will accelerate its restaurant expansion plan and review company staffing levels as part of its new business strategy .
Currently, the company operates in 119 markets worldwide and is divided into three segments: United States, Internationally Operated Markets, and International Development Licensed Markets.
In a memo to employees and reported by Reuters, McDonald's CEO Chris Kempczinski highlighted plans to develop new restaurants.
"We need to accelerate the pace of our restaurant openings to fully capture the increased demand we have seen over the past several years," Kempczinski said in the memo.
He warned company staff of possible layoffs in the spring as part of a plan to move faster and spur innovation.
Also read: Beyond meat stock, McDonald's is expanding its McPlant offering: what's going on?< /p>
"We will be evaluating roles and staffing levels in parts of the organization, and there will be tough discussions and decisions ahead," Kempczinski wrote in the memo.< /p>
"We will look at our strategy and values to guide how we make these decisions and support everyone involved in the business. We plan to finalize and begin communicating the decisions keys by April 3," he added. .
In an interview with The Wall Street Journal, Kempczinski said he expects McDonald's to save money on the staff review, but that it hasn't yet set a dollar amount to cut or the number of jobs it seeks to cut.
"Some jobs that exist today are either going to be moved or disappear," Kempczinski said during the interview.
He also said McDonald's had learned to operate more efficiently during the pandemic, when it needed to move quickly to respond to new ways of doing business.
Kempczinski added that the company needs to make decisions faster and have fewer siled divisions in the future.
McDonald's employs approximately 200,000 people in the company and its own restaurants.
Talking about opening new restaurants, Kempczinski said the company plans to open new restaurants in Europe, the United States and parts of Asia. McDonald's plans to open a mix of traditional restaurants and new formats, such as those focused on take-out sales only.
As inflation rises, US companies in various sectors have announced job cuts in corporate sectors.
In December 2022, PepsiCo Inc PEP announced that it would cut jobs at the headquarters of its North American snack and beverage divisions.
Ford Motor Co. F also announced plans to cut 3,000 salaried and contract jobs last summer to focus on the electric vehicle business.
Photo: Courtesy of Shutterstock.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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