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McDonald’s is going high-tech
Fox Business Outlook: Fast food giant is modernizing its locations by installing ordering kiosks, adding curbside pick-up and improving the drive-thru experience.
Fast-food giant McDonald’s is said to be preparing to lay off employees as it looks to restructure its U.S. business to increase profitability.
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The company’s president sent out an email to employees, suppliers and franchisees on Wednesday, saying the restructuring process means some employees will ultimately “exit our system,” according to The Wall Street Journal, which reviewed the memo. The scope of the layoffs was not immediately clear, but it is said they will be detailed more fully at a meeting next week.
A McDonald’s spokesperson stopped short of confirming the layoffs in a statement to FOX Business on Thursday, but she did confirm the company 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 working to address challenges in its U.S. business operations that it has been struggling with throughout recent years. It has introduced a number of new offerings and remodeled franchise locations to combat declining profitability.
The number of U.S. store visits declined by 5% during the company’s fiscal first-quarter as rivals introduced new breakfast deals. Nevertheless, sales rose nearly 3% at U.S. locations, due to new premium menu offerings and higher prices, but growth in other markets still outpaced its domestic sales.