The McDonald’s boss has warned employees to expect job cuts as part of a major restructuring that will also mean plans for new restaurants are accelerated.
His boss Chris Kempczinski said the fast-food giant was being harmed by an “outdated and self-limiting” structure.
“We try to solve the same problems several times, we don’t always exchange ideas,” he said.
A letter sent to employees worldwide said the company’s headcount would be reviewed by April.
“There will be difficult discussions and decisions ahead,” the memo said.
McDonald’s employs approximately 200,000 people in corporate functions and owned restaurants, 75% of whom are located outside the United States.
The CEO also announced that certain projects will be discontinued altogether.
“This will help us move faster as an organization while reducing our global costs and freeing up resources to invest in our growth,” he wrote in the letter to employees shared with investors.
The company did not provide details on the scope of the planned job cuts or which projects could be affected.
But in an interview with the Wall Street Journal newspaper, Mr Kemczinski said he has no firm target for the number of cuts.
“Some jobs that exist today will either be postponed or those jobs will go away,” he said.
As part of the new strategy, Mr. Kempczinski said the company wants to push to open more restaurants “to fully capitalize on the increased demand that we’ve been driving in recent years.”
Though food in general has suffered during the pandemic, McDonald’s has benefited from the company’s investments in online ordering and home delivery.
For the first nine months of the year, McDonald’s saw sales rise 6%, helped by price increases on items like its cheeseburgers.
- McDonald’s leaves Kazakhstan due to supply shortages
- McDonald’s increases the price of cheeseburgers
But its overseas profits have been hurt by the rise in the dollar and the country’s exit from Ukraine.
During its last update to investors in October, the company said rising prices also pose challenges, noting that many of its franchisee-operated restaurants are experiencing “increasing uncertainty and unease about the economic environment.”
Based in Chicago, the company operates in more than 160 countries around the world.
It said earlier this week it was withdrawing from Kazakhstan, which borders Russia, citing supply chain problems sparked by the war in Ukraine.
McDonald’s vowed to leave Russia in May after settling there 32 years ago – the latest change after several years of upheaval in the restaurant industry.
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