McDonald’s bares reorganization plans and job cuts to focus on expansion

McDonald’s may undergo reorganization, and job cuts may also be on the cards. It was reported that the fast-food chain’s chief executive officer, Chris Kempczinski, already told employees about the plans on Friday, Jan. 6, through a memo. He warned them that “difficult discussions and decisions” are up ahead.

According to CNBC, McDonald’s is taking these steps as it made the decision to refocus its priorities as it works on speeding up the expansion of its restaurants. The CEO clarified to employees that the layoffs are not being carried out as a cost-cutting measure, but it is to help the company to work more efficiently and progress at a faster rate.

At present, the burger joint’s corporate organization is operating in three divisions, and these are the United States, the international developmental licensed markets, and the international operated markets. All in all, McDonald’s is doing business in 119 markets around the world, and the current aim is to expand further. The company said it would accelerate the plans to build new outlets.

Moreover, as the company reorganizes, it will remove some initiatives from its priority list. Kempczinski did not mention which of the projects are being suspended.

“Today, we are divided into silos with a center, segments, and markets,” the McDonald’s chief said in the memo. “This approach is outdated and self-limiting – we are trying to solve the same problems multiple times, aren’t always sharing ideas and can be slow to innovate.”

He added, “We must accelerate the pace of our restaurant openings to fully capture the increased demand we have driven over the past few years.”

The CEO said they would be assessing job roles and staffing in various units of the organization. Afterwards, they will inform the affected employees about job termination by April 3. He explained that some of the workers might be transferred while others may be completely removed from the company.

Finally, Fox Business reported that McDonald's will now hasten the pace of its branch openings. It may also introduce new restaurant concepts to improve its service and offer more convenience to customers.

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