McDonald's CEO Confirms Layoffs Coming

McDonald’s is planning to cut some of its corporate staff, CEO Chris Kempczinski said in a memo to employees Friday (Saturday, Jan. 7, 2023, in Manila), Nathaniel Meyersohn reported for CNN Business.

Photo Insert: While McDonald’s has been a star of the pandemic, the CEO said it is not resting on its laurels.

“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.

Yet, 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.

McDonald’s also plans to accelerate the pace of its restaurant openings to respond to increased demand. The company said it sees an opportunity for further growth in many of its major markets.

“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.”

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.

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