McDonald’s plans to restructure warned employees that job cuts are on the way as part of a huge reorganisation that will also accelerate plans for additional locations.
The fast food industry was constrained by an “outdated and self-limiting“ structure, according to Chris Kempczinski, the company’s CEO.
We don’t always share systems, he said, and we’re constantly attempting to solve the same problems.
In a message to staff worldwide, it indicated that it will reassess corporate workforce levels by April.
“Difficult debates and judgements will be required,” according to the text.
McDonald’s employs about 200,000 employees in corporate and owned restaurants, with 75% of them located outside of the United States.McDonald’s plans to restructure
Its CEO has announced that certain efforts will be completely scrapped.
“This will enable us to move more quickly as an organization while lowering our worldwide costs and freeing up resources to invest in our growth,” he wrote in an internal email shared with investors.
The firm did not explain the scope of the proposed job layoffs, nor did it specify which projects would be affected.
Pandemic escalation
Mr Kempczinski stated that as part of the new strategy, the company intends to push for the opening of more restaurants “to fully exploit the growing demand we’ve produced over the previous several years.”
Even though eating out suffered as a result of the epidemic, McDonald’s has benefited from the company’s efforts in online ordering and home delivery.
McDonald’s sales grew 6% in the first nine months of the year, thanks to price increases on items like cheeseburgers.
McDonald’s is leaving Kazakhstan owing to a lack of supplies.
The price of McDonald’s cheeseburgers has been raised.
Yet, the currency’s rise and withdrawal from Ukraine have hampered its worldwide profitability.
In its most recent investor report, issued in October, the firm noted that rising prices were also causing problems, noting that there was “growing uncertainty and worry about the economic climate” at several of its franchised locations.
It said earlier this week that it will leave Kazakhstan, which borders Russia, citing supply chain problems created by the Ukrainian conflict.