Pursuing Business Expansion, McDonald’s Decides to Lay Off Workers

Pursuing Business Expansion, McDonald’s Decides to Lay Off Workers , McDonald’s, a fast food giant from the United States (US), plans to lay off employees and restructure its organization. The company is refocusing its priorities to accelerate the expansion of additional restaurants.

Reporting from CNBC , Saturday (7/1/2023), Chris Kempczinski, CEO of McDonald’s said the layoffs were not the company’s attempt to cut costs, but to help companies innovate faster and work more efficiently. In his memo to workers, Kempczinski said he had started cutting back on a number of projects that were not a priority for the company.

“Currently, we are divided into separate centers, segments and markets. This approach is out of date and limits us to trying to solve the same problem time and time again. Doesn’t always share ideas, and can be slow to innovate,” Kempczinksi wrote.

Today, the McDonald’s organization is divided into three segments: the US, the internationally operated market, and the international development licensed market. The company operates in 119 markets worldwide.

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In addition, McDonald’s announced that it will accelerate its plans to develop new restaurants.

“We must accelerate the pace of our restaurant openings to fully capture the demand we have driven over the last few years,” said Kempczinski.


McDonald’s did not previously release a forecast for how many new restaurants it would build in 2023. However, the company said each new unit would contribute about 1.5% to system-wide sales growth.

The company has yet to decide how many new restaurants it will build or how many jobs it will cut as part of its organizational restructuring. Kempczinski said the company will start finalizing and communicating decisions on layoffs by April 3, 2023.

Kempczinski also announced a number of internal promotions, effective February 1, to help the company execute its new strategy. Morgan Flatley, Global Chief Marketing Officer of McDonald’s oversees the company’s new business strategies.

McDonald’s shares closed up more than 2% on Friday (6/1/2023). The company is expected to report fourth quarter earnings on January 31, 2023

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