McDonald’s CEO has told employees to expect job layoffs as part of a massive reorganisation that will also hasten plans for new locations.

Its CEO, Chris Kempczinski, stated that the fast food company was harmed by a “outdated and self-limiting” structure.

“We’re trying to solve the same problems over and over again, and we’re not always sharing solutions,” he explained.

It stated in a letter to employees worldwide that it will reassess corporate workforce levels by April.

“Difficult discussions and judgements will be required,” the document stated.

McDonald’s employs over 200,000 people in corporate jobs and its owned restaurants, with 75% of them situated outside the United States.

Its CEO also announced that certain initiatives will be cancelled entirely.

“This will allow us to move faster as an organisation while cutting our global costs and freeing up resources to invest in our growth,” he wrote in an internal communication shared with investors.

The firm did not specify the breadth of the employment cuts under consideration, nor did it specify which projects would be affected.

Pandemic boost

As part of the new approach, Mr Kempczinski said the company wants to push to open more restaurants “to properly capture the increased demand we’ve driven over the past several years”.

Despite the fact that eating in general suffered during the epidemic, McDonald’s has benefited from the company’s efforts in online ordering and home delivery.

McDonald’s sales increased 6% in the first nine months of the year, aided by price hikes on goods such as cheeseburgers.

• McDonald’s is leaving Kazakhstan due to supply issues.
• McDonald’s raises the price of their cheeseburger.

However, the strengthening of the currency and the withdrawal from Ukraine have harmed its international profitability.

During its most recent investor report in October, the company stated that rising costs were also posing issues, noting that there was “growing uncertainty and concern about the economic environment” at many of its restaurants, which are owned by franchisees.

The Chicago-based corporation has a global presence in over 160 countries.

It announced earlier this week that it will withdraw from Kazakhstan, which borders Russia, citing supply chain concerns caused by the Ukrainian conflict.

McDonald’s said in May that it would depart Russia after 32 years of operation, the latest move in the restaurant industry.