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McDonald’s to lay off corporate staff despite increase in sales in 2022

By Nagasunder in US Employment News, posted January 9, 2023

McDonald's CEO Chris Kempczinski has announced plans to reduce corporate staff to help the fast food giant "move faster as a company."

In a message to staff, Kempcszinski said: "We will evaluate roles and staffing levels in parts of the organization and there will be difficult discussions and decisions ahead."

"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."

The company saw a big rise in takeout orders during the early days of the Covid-19 pandemic.

Sales have also increased in 2022 as people looked for cheaper dining options due to inflation.

The CEO outlined a plan to remove internal obstacles, become more innovative, and stop work that doesn't support the firm's aims, the corporation insisted that it was not resting on its laurels.

Kempczinski wrote to employees :"While there's a lot for us to be proud of, you've also told us that there's more we can do.

"We're performing at a high level, but we can do even better."

He said that the business must become quicker, more creative, and more effective.

Kempczinski stated in a Friday interview with the Wall Street Journal that this indicates the corporation would announce layoffs.

He said: "Some jobs that are existing today are either going to get moved or those jobs may go away.

McDonald's says it will announce its future staffing plans by Monday, April 3

According to Sources, Kempczinski stated that he anticipates making savings as a result of the staffing adjustments but did not specify how much money or how many positions he wished to eliminate.

According to its most recent annual report, McDonald's had about 200,000 corporate employees and staff members in company-owned locations at the end of 2021.

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More than 75 percent of them had their base of operations outside of the US.

Around the world, McDonald's franchise outlets employ more than two million people.

Large American businesses like Amazon, Salesforce, and Goldman Sachs have all recently announced layoffs.

Source: WAAY31abc

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