Business

McDonald’s CEO Chris Kempczynski says the layoffs are coming without affecting restaurants

NEW YORK — McDonald’s plans to lay off some of its corporate staff, CEO Chris Kempczinski said in a memo to employees on Friday.

“We will be evaluating roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead of us,” Kempzinski said. “Certain initiatives will be de-prioritized or stopped altogether.” This will help us move faster as an organization while reducing our global costs and freeing up resources to invest in our growth.”

McDonald’s has been the star of the pandemic: people ordered more takeout from the company in the early days of Covid, and sales have soared over the past year as inflation has pushed diners to look for cheaper options.

But the company said it’s not resting on its laurels, the CEO said, outlining a plan to break down internal barriers, become more innovative and cut work that doesn’t align with the company’s priorities.

McDonald’s also plans to accelerate the pace of restaurant openings to respond to increased demand. The company said it sees opportunity for further growth in many of its core markets.

“While we have much to be proud of, you also told us we could do more,” Kempczynski wrote to employees. “We are performing at a high level, but we can do even better.”

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The company must become faster, more innovative and more efficient, he said. In an interview with the Wall Street Journal on Friday, Kempczinski said that means the company will announce layoffs.

“Some of the jobs that exist today will either move or those jobs may disappear,” Kempczynski said.

McDonald’s says it plans to announce its future staffing plans by April 3.

Kempczynski said he expects to save money as part of the staffing changes, but did not have a set dollar amount for the cuts or the number of jobs he wants to cut, the Journal reported.

McDonald’s had about 200,000 corporate staff and company-owned restaurant workers at the end of 2021, according to its latest annual report. More than 75% of them were located outside the United States. More than two million people work in McDonald’s franchise locations around the world.

Some of America’s biggest companies have announced layoffs in recent weeks, including Amazon, Salesforce and Goldman Sachs.

(The-CNN-Wire & 2022 Cable News Network, Inc., a Time Warner Company. All rights reserved.)

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