McDonald’s is planning to cut some of its corporate staff, CEO Chris Kempczinski said in a memo to employees Friday.
“We will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead,” Kempszinski 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 a star of the pandemic: People ordered more takeout from the company during the early days of Covid and sales have surged over the past year as inflation sent restaurant-goers looking 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, grow more innovative and reduce work that doesn’t align with the company’s priorities.
“While there’s a lot for us to be proud of, you’ve also told us that there’s more we can do,” Kempczinski wrote to employees. “We’re performing at a high level, but we can do even better.”
The company has to become faster, more innovative and more efficient, he said. In an interview with the Wall Street Journal Friday, Kempczinski said that means company will announce layoffs.
“Some jobs that are existing today are either going to get moved or those jobs may go away,” Kempczinski
McDonald’s says it plans to communicate its future staffing plans by April 3.
Kempczinski said he expects to save money as part of the staffing changes, but doesn’t have a set dollar amount to slash or number of jobs he’s looking to cut, the Journal reported.
McDonald’s had around 200,000 corporate staff and workers at company-owned restaurants at the end of 2021, according to its latest annual report. More than 75% of them were based outside of the United States. More than two million people work at McDonald’s franchised locations around the world.