With the global fast food chain McDonald’s refocusing its priorities to accelerate restaurant expansion, the brand is contemplating cutting down jobs to reorganize the company, according to CEO Chris Kempczinski.
The fast-food corporation stated that the job cuts are not intended to save money, but rather to help the company innovate faster and work more efficiently. According to a company-wide memo from Kempczinski, as part of the reorganization, the company will deprioritize and halt certain initiatives. What those projects are remains unknown.
“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 “This approach is outdated and self-limiting – we are trying to solve the same problems multiple times, aren’t always sharing ideas and can be slow to innovate.”
McDonald’s organization is currently divided into three segments: the United States, international operated markets, and international development licensed markets. The company has a global presence in 119 markets.
In addition, McDonald’s announced on Friday that it will accelerate the development of 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 said in the memo.
McDonald’s has not previously stated how many new restaurants it plans to build in 2023, but the company stated in November that new units would contribute approximately 1.5% to system-wide sales growth in 2022.
The company has yet to decide how many new restaurants it will open or how many jobs will be lost as a result of the reorganization. Kempczinski stated that the company will finalize and begin communicating layoff decisions by April 3.
Kempczinski also announced a number of internal promotions that will take effect on February 1 to help the company implement its new strategy. Morgan Flatley, Global Chief Marketing Officer, will also be in charge of new business ventures.
Skye Anderson will be transferred from McDonald’s west zone in the United States to global business services. As global franchising officer, Andrew Gregory will also oversee global development, and Spero Droulias will move from senior vice president of finance to chief transformation officer.
McDonald’s stock rose more than 2% on Friday. On January 31, the company is expected to report fourth-quarter earnings.
(Adapted from FoxBusiness.com)