McDonald’s plans corporate layoffs as part of restructure

McDonald’s plans corporate layoffs as part of restructure
© Getty Images

McDonald's is preparing a fresh round of layoffs as it seeks to downsize its corporate structure. 

The Wall Street Journal reported on Thursday that McDonald’s USA President Chris Kempczinski announced in an email to employees, suppliers and franchisees that the company will seek to restructure its regional offices in the U.S. 

"I recognize that change is difficult, and that eliminating layers within our organization means some employees will ultimately exit our system," Mr. Kempczinski wrote in the email, which was viewed by the Journal.


He said in an accompanying video message that the number of layers between CEO Steve Easterbrook and the company's field consultants would decrease from eight to six.

A spokeswoman for McDonald's told the Journal on Thursday that the new structure is intended to make the fast-food company "more dynamic, nimble and competitive."

It's not clear how many people will be affected by the layoffs, but Kempczinski is expected to host a town hall meeting on June 12 to provide additional details. 

The restructuring is part of an effort to reduce McDonald's administrative costs by $500 million by 2019, the Journal reported. 

McDonald's has struggled to turn around its business in the U.S. in recent years, as it faces stiff competition from competing fast-food restaurants and so-called fast-casual chains, like Shake Shack.

It's invested in a number of improvements in its stores, such as electronic ordering and table service. Just last month, it began serving its Quarter Pounder burgers with fresh, as opposed to frozen, beef.