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McDonald’s The company plans to cut jobs and reorganize as it refocuses on priorities to accelerate restaurant expansion, CEO Chris Kempczinski told employees on Friday.
The fast-food giant said the job cuts were not a cost-cutting measure but meant to help the company innovate faster and work more efficiently. As part of the restructuring, the company plans to deprioritize and halt certain initiatives. It is unknown what these projects are.
“Today we are divided into centers, segments and silos with markets,” wrote Kempzynski. “This approach is outdated and self-limiting. We are trying to solve the same problem over and over, but we don’t always share ideas, which can slow innovation.”
Today, McDonald’s organization is divided into three segments: the United States, the International Operating Market, and the International Development License Market. The company operates in 119 markets around the world.
Additionally, McDonald’s said Friday it will accelerate plans to develop new restaurants.
“We must accelerate the pace of restaurant openings in order to fully capture the increased demand over the last few years,” Kempczinski said in the memo.
McDonald’s had not previously released a forecast for the number of new restaurants it plans to open in 2023, but the company said in November that the new units would contribute about 1.5% to system-wide sales growth in 2022. said.
The company has yet to decide how many new restaurants it will build or how many jobs it will cut as part of the reorganization. Kempczinski said the company has until April 3 to finalize decisions on layoffs and begin notifying them.
Kempczinski also announced several internal promotions effective February 1 to help the company implement its new strategy. Global Chief Marketing Officer Morgan Flatley will also oversee the new business. Skye Anderson moves from her McDonald’s West US Zone to Global Business Services. GLOBAL FRANCHISE Her Gregory’s role will also include leading global development, with Spero her Dorias transitioning from her Vice President of Finance to Chief Transformation Officer of the company.
McDonald’s shares closed more than 2% higher on Friday. The company plans to report fourth-quarter earnings on January 31.