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As it speeds up the launching of new restaurants, McDonald’s has announced intentions to reorganise the company and reduce the number of employees

BusinessAs it speeds up the launching of new restaurants, McDonald's has announced intentions to reorganise the company and reduce the number of employees

McDonald’s CEO Chris Kempczinski informed staff on Friday that the firm is aiming to reduce employment levels as well as undergo a restructuring in order to accelerate the growth of its store footprint.

The large fast food chain has said that the job cutbacks are not being made in an effort to reduce costs, but rather to assist the firm in innovating more quickly and operating more effectively. According to a message that was sent out to the whole firm by Kempczinski, the business would be reorganising its priorities and putting a stop to certain efforts as part of the restructuring. It is not quite obvious what those initiatives are at this point.

According to what Kempczinski wrote, “now, we are separated into silos that each have a centre, sectors, and markets.” We are attempting to address the same issues over and over again, we aren’t always sharing ideas, and we might be sluggish to innovate when we use this strategy, which is why it’s out of date and why it’s self-limiting.

The McDonald’s organisation is now split into three divisions: the United States, international operated markets, and international developmental licenced markets. The United States division is the largest of the three. 119 countries throughout the globe are served by the company’s operations.

In a separate development, McDonald’s said on Friday that it would hasten the process of developing new restaurant concepts.

In the internal communication, Kempczinski said that in order to “completely capture the increasing demand we’ve created over the previous several years,” the company needed to “accelerate the pace of our restaurant openings.”

McDonald’s has not previously made public a projection on the number of new restaurants it intends to construct in 2023; nevertheless, the business said in November that new units will add around 1.5% to the rise of system-wide sales in 2022.

The firm has not yet made a decision about the number of new restaurants it will construct, nor has it determined the total number of positions that will be cut as part of the restructuring. Kempczinski said that the corporation would complete its choices about the layoffs by April 3 and will then begin communicating those decisions.

A number of promotions inside the firm were also announced by Kempczinski, all of which will take effect on February 1 and are intended to assist the business in implementing its new plan. Morgan Flatley, the Chief Marketing Officer for the whole company, will also be in charge of new commercial endeavours. Skye Anderson is going to transition from McDonald’s west zone in the United States to the global business services team. Andrew Gregory’s responsibilities as global franchising officer will expand to encompass leadership of global development, while Spero Droulias will move through the ranks to become the company’s chief transformation officer after most recently serving as senior vice president of finance.

On Friday, McDonald’s stock finished the day with a gain of more than 2%. On January 31st, it is anticipated that the corporation will release the results report for the fourth quarter.

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