McDonald’s Corporation (NYSE:MCD) announced a new round of corporate layoffs as the company looks to readjust its business plan.
The fast food giant said that it will be laying off workers in its corporate branch as part of a restructuring of its U.S. business to increase profitability. The burger chain sent out an email to employees, suppliers and franchisees on Wednesday, noting that the restructuring process will result in some of its workers having to “exit our system.”
It is unclear how widespread this round of McDonald’s layoffs will be but the details of the move will be announced in a meeting next week. A McDonald’s spokesperson did not fully confirm the layoffs, but she did confirm that the chain was putting in place a new “field structure.”
“We are putting into place a new U.S. field structure that will better support our franchisees and will ensure McDonald’s continues on a path to being more dynamic, nimble and competitive. These planned actions are consistent with our previously announced $500M G&A targeted savings, which we expect to achieve by the end of 2019,” Terri Hickey, a McDonald’s spokesperson, said to FOX Business via email.
McDonald’s has been looking to bounce back from its declining profit margins as it has rolled out new products in recent years that have not connected with customers.
MCD stock is up about 4.4% after the company announced the layoffs.
