McDonald's might join the layoff crusade as company plans for corporate job cuts: Report

McDonald’s CEO, Chris Kempczinski has warned the staff to brace themselves for job cuts as the fast food giant is planning to bring new changes. According to the BBC, Kempczinski believes that the fast food company has been hurt by an “outdated and self-limiting” structure. "We are trying to solve the same problems multiple times, and aren't always sharing ideas," he said. As per the reports, Kempczinski sent a letter to the employees globally making it clear that the company will review its “corporate staffing plans” by April this year. 

The letter reads, "There will be difficult discussions and decisions ahead”. The BBC also reported that the Mcdonald's chief is planning to halt certain projects altogether. In the letter, he wrote, “This will help us move faster as an organization while reducing our global costs and freeing up resources to invest in our growth”.

During a conversation with The Wall Street Journal on Friday, the Mcdonald's head made it clear that he doesn’t have a fixed goal when it comes to the number of jobs the company is planning to cut. He said, “Some jobs that are existing today are either going to get moved or those jobs may go away."

Chris Kempczinski is planning to cash in the boost following the pandemic

According to the BBC, the fast food giant has seen a 6% rise in sales post-pandemic. Part of the reason for the rise in sales is the price increase on items like cheeseburgers. McDonald's asserted that he is planning to open more restaurants “to fully capture the increased demand we've driven over the past few years". However, the company has witnessed challenges due to the rise in these prices and its removal from the war zone amid the Russia-Ukraine war. 

As per the reports, in an October update to the investors, it was stated that the rising prices have affected several franchises of the fast food chain amid the "increasing uncertainty and unease about the economic environment". It was earlier reported that Mcdonald's is pulling out from Kazakhstan which borders Russia over supply chain issues. The fast food chain is currently operating in full swing in 160 countries around the world. Hence, a possible McDonald's layoffs can become a matter of worry for its thousands of employees.