McDonald’s CEO says layoffs are coming

New York
CNN
–

McDonald’s CEO Chris Kempzynski said in a note to employees Friday that McDonald’s plans to lay off some of its employees.

“We will be assessing roles and staffing levels in parts of the organization and there will be tough discussions and decisions going forward,” Kempszynski said. “Certain initiatives will be deprioritized 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 was a star of the pandemic: People ordered more takeout from the company during the early days of Covid and Sales soared Over the past year, inflation has prompted diners to look for cheaper options.

But the company said it is not satisfied with what it has achieved, said the CEO, outlining a plan to break down internal barriers, increase innovation and reduce work that is not in line with the company’s priorities.

McDonald’s also plans to accelerate the opening of its restaurants to respond to the growing demand. The company said it sees opportunity for further growth in several of its key markets.

“Although there is much to be proud of, you also told us there is more we can do,” Kempzinski wrote to the staff. “We perform at a high level, but we can do better.”

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

“Some of the jobs that exist today will either be transferred or they may disappear,” Kempzynski said.

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

Kempzynski said he expects to save money as part of the staffing changes, but does not have an exact dollar amount to cut or the number of jobs he is looking to cut, the Journal reported.

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

Some of America’s largest companies have announced layoffs in recent weeks, including Amazon

(AMZN)sales force

(CRM) and Goldman Sachs

(GS).