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McDonald’s plans to chop jobs and reorganize as the company refocuses its priorities to speed up restaurant expansion, chief executive Chris Kempczinski told employees on Friday.
The fast-food giant said the job cuts will not be a cost-cutting measure, but to assist the company innovate faster and work more efficiently. Based on Kempczinski’s memo, as part of the reorganization, the company will lower priorities and put some initiatives on hold. It will not be known what these projects are.
“Today we’re divided into silos with a middle, segments and markets,” wrote Kempczinski. “This approach is antiquated and self-limiting – we try to unravel the same problems over and yet again, we do not all the time share ideas, and we are able to innovate slowly.”
Currently, the McDonald’s organization is split into three segments: United States, International Markets, and Licensed Growth Markets. The corporate operates in 119 markets worldwide.
As well as, McDonald’s said on Friday it would speed up plans to develop latest restaurants.
“We want to speed up the pace of opening our restaurants to take full advantage of the increased demand we have been driving over the past few years,” Kempczinski said in a memo.
McDonald’s has not previously released an estimate of the number of latest restaurants it plans to construct in 2023, but the company said in November that the latest premises would contribute about 1.5% to system-wide sales growth in 2022.
The corporate has yet to determine what number of latest restaurants it will construct or what number of jobs it will cut as part of the reorganization. Kempczinski said the company would finalize and begin communicating layoff decisions by April 3.
Kempczinski also announced several internal promotions that went into effect on February 1 to assist the company pursue its latest strategy. Global Chief Marketing Officer Morgan Flatley may even oversee latest business ventures. Skye Anderson will move from McDonald’s US West Zone to Global Business Services. Andrew Gregory’s role as global franchise specialist may even lead global development, with Spero Droulias transitioning from senior vp of finance to director of company transformation.
McDonald’s shares closed up greater than 2% on Friday. The corporate is predicted to report its fourth-quarter results on January 31.